As April comes to a close, it’s time to compile the rankings for the top-performing sector and industry exchange-traded funds of the month.
Taking a broader look at the stock market, the S&P 500 Index, represented by the SPDR S&P 500 ETF Trust SPY, finished April on a downturn, declining by approximately 3%. This marks the end of a five-month streak of gains.
Similarly, the tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust QQQ, experienced a 3.5% decline.
Among large-cap indices, blue-chip stocks showed slight underperformance, with the SPDR Dow Jones Industrial Average ETF DIA slipping by 4.5%.
Small-cap stocks, represented by the iShares Russell 2000 ETF IWM, plummeted by over 6%, marking their worst performance since October 2023.
Overall, it has been a challenging month for the stock market, primarily due to inflation surprises surpassing expectations. This has led to a recalibration of market expectations regarding potential Federal Reserve rate cuts.
Additionally, complex global geopolitical tensions have emerged, notably between Israel and Iran, alongside the ongoing issue in the Gaza Strip.
May is anticipated to start with a crucial event as investors await the Federal Reserve Open Market Committee (FOMC) meeting on Wednesday.
While no interest rate changes are expected, all eyes will be on Fed Chair Jerome Powell‘s remarks to assess the Fed’s stance in response to recent inflation surprises.
Performance Of Sector ETFs In April 2024
At the sector level, only the utilities sector managed to avoid losses for the month, rising by 2.1%.
The largest stock contributors to the utilities’ performance in April are NextEra Energy, Inc. NEE, The Southern Company SO, Dominion Energy, Inc. D and NRG Energy NRG which showed monthly gains between 4% and 8%.
Energy stocks remained broadly stable, while the other nine S&P 500’s sectors showcased losses.
Real estate experienced the worst performance, down by over 7%, dragged down by its high sensitivity to interest rates, as Treasury yields increase across the board during the month.
Following real estate, the technology and healthcare sectors also showed poor performance in April.
April’s Best And Worst Sector ETFs: Utilities Lead, Real Estate Lags
| Sector | April 2024 performance |
|---|---|
| Utilities Select Sector SPDR Fund XLU | 2.06% |
| Energy Select Sector SPDR Fund XLE | 0.01% |
| Consumer Staples Select Sector SPDR Fund XLP | -1.11% |
| Industrials Select Sector SPDR Fund XLI | -3.23% |
| Consumer Discretionary Select Sector SPDR Fund XLY | -3.68% |
| Financial Select Sector SPDR Fund XLF | -3.85% |
| Materials Select Sector SPDR Fund XLB | -4.13% |
| Communication Services Select Sector SPDR Fund XLC | -4.24% |
| Technology Select Sector SPDR Fund XLK | -4.78% |
| Health Care Select Sector SPDR Fund XLV | -4.85% |
| Real Estate Select Sector SPDR Fund XLRE | -7.83% |
Performance Of Industry ETFs In April 2024
Based on the industry ETF list provided by BlackRock Inc.’s BLK iShares, only five out of the 25 industries managed to report gains in April. Among them, miners did well across the board, with silver, copper, and gold mining stocks reporting robust gains.
Standout contributors to the mining industry’s outperformance in April were Pan American Silver Corp. PAAS, up over 20%, Newmont Corp. NEM, up 14%, Anglo American plc AAUKF, up over 40%
Energy producers also managed to end the month in the green.
On the bottom side of the industry rankings, homebuilders, transportation, biotech stocks, digital infrastructure and real estate all report losses between 7% and 9.6% in April.
| ETF Name | Performance |
|---|---|
| iShares MSCI Global Silver and Metals Miners ETF SLVP | 12.11% |
| iShares Copper and Metals Mining ETF COPX | 9.50% |
| iShares MSCI Global Gold Miners ETF RING | 5.93% |
| iShares MSCI Global Metals & Mining Producers ETF PICK | 2.81% |
| iShares MSCI Global Energy Producers ETF FILL | 2.46% |
| iShares U.S. Aerospace & Defense ETF ITA | -1.16% |
| iShares U.S. Oil & Gas Exploration & Production ETF IEO | -1.37% |
| iShares Residential and Multisector Real Estate ETF REZ | -1.66% |
| iShares Lithium Miners and Producers ETF ILIT | -3.30% |
| iShares U.S. Broker-Dealers & Securities Exchange ETF IAI | -3.74% |
| iShares U.S. Financial Services ETF IYG | -3.88% |
| iShares Expanded Tech Sector ETF IGM | -4.37% |
| iShares Semiconductor ETF SOXX | -4.40% |
| iShares U.S. Healthcare Providers ETF IHF | -4.79% |
| iShares U.S. Insurance ETF IAK | -4.85% |
| iShares U.S. Regional Banks ETF IAT | -5.11% |
| iShares U.S. Pharmaceuticals ETF IHE | -5.38% |
| iShares U.S. Oil Equipment & Services ETF IEZ | -5.45% |
| iShares Mortgage Real Estate ETF REM | -5.57% |
| iShares U.S. Medical Devices ETF IHI | -5.75% |
| iShares Global Timber & Forestry ETF WOOD | -6.20% |
| iShares Expanded Tech-Software Sector ETF IGV | -6.76% |
| iShares U.S. Digital Infrastructure and Real Estate ETF IDGT | -7.12% |
| iShares Biotechnology ETF IBB | -7.23% |
| iShares U.S. Transportation ETF IYT | -8.34% |
| iShares U.S. Home Construction ETF ITB | -9.60% |
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Image generated using artificial intelligence via Midjourney.
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