5 Best Sector ETFs for April | ETF Trends

The month of April saw more strength for U.S. equities as the markets were boosted by more optimism coming from the Commerce Department with the U.S. economy rebounding in the first quarter, beating analysts’ expectations of 2.5 percent growth with a 3.2 percent growth number.

The GDP figure represents the strongest rate of growth for the first quarter in four years and matches the 3.2 percent growth experienced a year ago.

“While the (first quarter) boost from net trade and state and local government spending is unlikely to be repeated in [the second quarter], the main message is that private consumption and investment are slowing down only gradually,” said Brian Coulton, chief economist at Fitch Ratings, in a statement.

This fed into strength for certain exchange-traded funds (ETFs) in varying sectors.

Here were five top-performing sector ETFs during the month of April (gains based on Morningstar performance numbers):

iShares PHLX Semiconductor ETF (NasdaqGM: SOXX)–11.62 percent: seeks to track the investment results of the PHLX Semiconductor Sector Index composed of U.S. equities in the semiconductor sector. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. The underlying index measures the performance of U.S.-traded securities of companies engaged in the semiconductor business.

Claymore/Delta Global Shipping (NYSEArca: SEA)–10.37 percent: seeks to track the price and yield performance, before fees and expenses, of the Delta Global Shipping index. The fund invests at least 90% of total assets in common stock, American depositary receipts (“ADRs”), global depositary receipts(“GDRs”) and master limited partnerships (“MLPs”) that comprise the index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the index.

Invesco Solar ETF (NYSEARCA: TAN)–8.33 percent: seeks to track the investment results (before fees and expenses) of the MAC Global Solar Energy Index (the “underlying index”). The fund will invest at least 90% of its total assets in the securities (including ADRs and GDRs) that comprise the underlying index. The underlying index is designed to provide exposure to companies listed on exchanges in developed markets that derive a significant amount of their revenues from the following business segments of the solar industry: solar power equipment producers including ancillary or enabling products; etc.

Communication Services Select Sector SPDR ETF (NYSEArca: XLC)–7.06 percent: seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Large Cap IndexSM. The fund generally will invest under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the securities of its underlying index. The underlying index is designed to measure the performance of companies that exhibit certain quality, valuation and momentum characteristics within a universe of publicly-traded U.S. large capitalization equity securities.

Invesco Dynamic Media ETF (NYSEArca: PBS)–6.73 percent: seeks to track the investment results of the Dynamic Media IntellidexSM Index. The underlying intellidex was composed of common stocks of 3 U.S. media companies. These are companies that are principally engaged in the development, production, sale and distribution of goods or services used in the media industry.

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