The stock market has been trending steadily higher across 2024. Almost two-thirds of all S&P 500 components are in positive territory since Jan. 1, and the broader index itself is sitting on a roughly 10% return as we approach the halfway mark of the year.
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As a result, there is a decidedly “risk on” flavor to the top-performing investment themes right now. Whether you’re playing cyclical economic strength through industrial stocks or raw materials, or riding tech trends like semiconductors or cryptocurrencies, the best ETFs to buy now all offer exposure to growth-oriented areas of Wall Street.
These are all very tactical ETFs. But to be clear, none of these are “leveraged” ETFs designed to deliver two or three times returns — multipliers that are profitable when they pay off but can deliver significant pain when an investment thesis doesn’t work out. Also, all seven are well established with a minimum of $1 billion or more in total assets.
There’s still risk here, to be sure. But the following list of the best ETFs for June is a curated lineup of targeted vehicles that look beyond the typical crop of plain-vanilla index funds:
| ETF | Assets Under Management* | Expense Ratio | Year-to-Date Performance* |
| ProShares Bitcoin Strategy ETF (ticker: BITO) | $2.1 billion | 0.95% | 30.4% |
| VanEck Semiconductor ETF (SMH) | $17.9 billion | 0.35% | 43.8% |
| Global X Copper Miners ETF (COPX) | $2.3 billion | 0.65% | 23.1% |
| abrdn Physical Silver Shares ETF (SIVR) | $1.2 billion | 0.30% | 25.3% |
| First Trust RBA American Industrial Renaissance ETF (AIRR) | $900 million | 0.70% | 21.1% |
| Invesco S&P MidCap Momentum ETF (XMMO) | $2.1 billion | 0.34% | 26.1% |
| Invesco S&P 500 Momentum ETF (SPMO) | $1.2 billion | 0.13% | 27.2% |
*As of June 4 close.
ProShares Bitcoin Strategy ETF (BITO)
Assets under management: $2.1 billion Expense ratio: 0.95%, or $95 annually on every $10,000 invested YTD return: 30.4%
A familiar ETF on the list of the best-performing funds so far this year, BITO is a way to play the popular cryptocurrency Bitcoin (BTC) without having a digital wallet to own it directly — or as directly as you can ever own digital assets. It does not tie its performance to stocks, but rather to the underlying performance of Bitcoin itself. BITO is part of a rash of recently approved “spot market” crypto ETFs, but it remains a top choice for many investors because it is both well capitalized (with a few billion in assets) and more affordable than some other funds. Bitcoin prices rolled back in April from their 2024 highs, but they look to be on the rise once more as the popular crypto’s price is above $70,000 as of June 4. That could hint that momentum may return to the upside in the second half of the year.
VanEck Semiconductor ETF (SMH)
Assets under management: $17.9 billion Expense ratio: 0.35%, or $35 annually on every $10,000 invested YTD return: 43.8%
A booming semiconductor sector has led to a continued rally for this top ETF, which holds the leading names in the space. Leading chipmaker Nvidia Corp. (NVDA) represents more than 20% of the portfolio, but other companies, such as Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) and Broadcom Inc. (AVGO), also play an important role in its portfolio of just under 30 companies. This ETF has more than tripled the returns of the S&P 500 index year to date, and given the momentum of leading semiconductor stocks like NVDA lately, it seems a safe bet that this sector will continue to run for a while. As high-tech applications like artificial intelligence are creating strong global demand for chips, SMH is among the best ETFs to buy now to play this long-term technology trend.
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Global X Copper Miners ETF (COPX)
Assets under management: $2.3 billion Expense ratio: 0.65%, or $65 annually on $10,000 invested YTD performance: 23.1%
COPX is among the best ETFs to buy now as a way to play inflationary pricing pressures and increasing global demand that are lifting the copper industry. Though perhaps not the most closely followed commodity, it is critical for electrical wiring, plumbing pipes and a host of other applications. Hot demand and a general inflationary environment pushed copper to an all-time high of more than $11,100 per metric ton in May, and while the market appears to have cooled off a tad over the last few weeks, this milestone is still a good sign of strength for the industry.
COPX is not a direct play on the metal, as it holds 40 mining stocks that are major copper extractors but also dabble in other materials as part of their operations. These include a healthy dose of international stocks, with only 10% of assets in the U.S. Top holdings include Canadian firm First Quantum Minerals Ltd. (OTC: FQVLF) as well as Poland’s KGHM Polska Miedz S.A. (OTC: KGHPF). This global approach to copper may be a challenge to replicate on your own via individual holdings, making COPX a good option if you’re interested in playing the trend broadly but not researching or trading specific miners.
abrdn Physical Silver Shares ETF (SIVR)
Assets under management: $1.2 billion Expense ratio: 0.3%, or $30 annually on $10,000 invested YTD performance: 25.3%
Looking beyond the “base” metals like copper, SIVR is a way to play metal markets via direct exposure to silver. But while COPX holds miners, this ETF is tied to physical silver bullion bars stored in secured vaults rather than publicly traded stocks with exposure to the commodity. There are other similar funds out there, some of which also hold other metals like gold — as well as funds like the iShares MSCI Global Silver Miners ETF (SLVP) that are tied to mining companies rather than the metal — but SIVR is an affordable and established option for a direct investment in silver.
It’s also much easier to buy and sell silver via a fund like this, rather than dealing with a massive cache of silver coins or bars that you have to lock up in a safe and then take to a local broker to turn back into cash. Just buy and sell SIVR like any ETF, and that’s that.
First Trust RBA American Industrial Renaissance ETF (AIRR)
Assets under management: $900 million Expense ratio: 0.7%, or $70 annually on $10,000 invested YTD performance: 21.1%
Perhaps the most unique fund on this list, the First Trust ETF looks to play an “industrial renaissance” by putting together a portfolio of small and midsize industrial stocks along with local and regional banks that provide financing for these firms. The idea is to cut out mega-caps and multinational firms that do business elsewhere, with the median market capitalization coming in at just $2.8 billion across 45 holdings.
This ETF is designed to see how homegrown manufacturers (and the banks that support them) are doing. And these stocks seem to be doing quite well indeed, as the fund has doubled the S&P 500’s performance year to date. Top holdings at present include electrical equipment firm Powell Industries Inc. (POWL) and construction firm Dycom Industries Inc. (DY).
Invesco S&P MidCap Momentum ETF (XMMO)
Assets under management: $2.1 billion Expense ratio: 0.34%, or $34 annually on $10,000 invested YTD performance: 26.1%
If you like the notion of looking beyond the usual blue-chip stocks to tap into smaller or more domestic-focused companies that are doing well right now, XMMO is a good choice. Though the firms are a bit larger than the prior industrial-renaissance fund, with an average market cap of just under $11 billion it offers a broader list of holdings (about 80 components). About 41% of assets are in industrials, but it also offers good exposure to the technology (16%) and consumer discretionary (13%) sectors.
That mix may change, but as a rule you’re not going to see many utility or real estate picks, as this is a momentum-focused ETF that looks for companies making big moves. There’s definitely no guarantees, as even high-flying stocks can stumble, but recent outperformance hints that there may be upside to come for the stocks and sectors that are currently powering XMMO.
Invesco S&P 500 Momentum ETF (SPMO)
Assets under management: $1.2 billion Expense ratio: 0.13%, or $13 annually on $10,000 invested YTD performance: 27.2%
If you like the idea of chasing high-momentum stocks, you don’t have to look for smaller or uncommon firms to do that. SPMO is an affordable and deceptively simple way to take a more selective approach to your favorite big-name companies, as it starts with the S&P 500, then cuts out the 400 companies that are exhibiting the lowest momentum of the group. The result means that winners like Nvidia and Apple Inc. (AAPL) still have pride of place, but other laggards, such as Tesla Inc. (TSLA), don’t make the cut.
As with the prior mid-cap fund, past performance is not a guarantee of future return. But if you believe in momentum investing and want to spice up your portfolio in anticipation of growth, SPMO is worth a look as one of the best ETFs to buy now.
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7 Best ETFs to Buy Now originally appeared on usnews.com
Update 06/05/24: This story was published at an earlier date and has been updated with new information.
