Biotech, China, insurance and healthcare ETFs led June gains as strong earnings, AI optimism and easing geopolitical fears lifted markets.
June has been a month full of excitement in the ETF market. While commercial space and AI infrastructure attracted a significant amount of investor attention, biotechnology exposure comprises four out of the five top-performing equity ETFs as of June 29.
Biotech ETFs are surging in 2026 as a friendlier FDA, strong M&A activity and AI-driven drug discovery fuel optimism for more upside.
FactSet analysis shows thematic funds respond differently to market shocks, with some genomic ETFs rising after COVID while others lagged.
ARK Genomic Revolution ETF (ARKG) maintains a "Buy" rating, driven by strong technicals and momentum despite a premium valuation. ARKG has outperformed XLV and SPY over the past year, returning 23% since July and beating the S&P 500 by 12 percentage points. The ETF's concentrated, small-cap, high-risk portfolio is supported by rising AUM, robust liquidity, and a bullish technical breakout.
It's probably time to give Cathie Wood the benefit of the doubt as the tides turn back in disruptive innovation's favor.
Low-cost passive index investing (in the S&P 500 or Nasdaq 100) has been key to impressive results in recent years.
The Health Care Select Sector SPDR ETF (XLV) was up approximately 6% year-to-date as of January 29. While it is still early days, this performance is already twice as robust as the sector ETF's performance for all of 2024.
Don't look now, but Cathie Wood of Ark Invest is fresh off an impressive comeback year, with her broader basket of disruptive technology funds posting high double-digit percentage returns.
Over recent years, investors have sought safety within mega-cap tech stocks while searching for alpha within disruptive technology trends like artificial intelligence. Most investors can agree the AI theme has long-term growth potential, and the current market sell-off is a short-term hiccup.
On this week's episode of ETF Prime, Roxanna Islam, CFA, CAIA, head of sector & industry research at VettaFi, joined host Nate Geraci. The two discussed top ETF performers and trends this year as well as long-established asset managers finally joining the ETF industry.
I maintain a buy rating on ARK Genomic Revolution ETF (ARKG) due to improving momentum, potential lower interest rates, and a favorable M&A environment in 2025. Despite a 20% decline in 2024, ARKG's technical chart shows bullish potential with key support at $21-$22 and resistance at $28. ARKG is a small, actively managed ETF focused on genomics, with high exposure to small-cap stocks and a diversified mix of value, blend, and growth.