Best & Worst Monthly Performers: June 3 Edition

Here is a look at the 25 best and 25 worst ETFs from the past trading month. Traders can use this list to find prospective candidates that have deviated too far from their longer-term trends, thereby serving as potential starting points for those looking to take on either short or long positions.Likewise, traders can also use this list to spot potential trend reversal opportunities that may offer a generous risk/reward. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques.To get access to all premium content, sign up for a free 14-day trial to Pro.Best Performing ETFs‌The‌ ‌U.S.‌ market ‌gained during‌ ‌the‌ ‌last‌ ‌month‌ as economic activity begins to gather momentum and on gains from leading names in the financials and industrials sectors.Several oil funds like United States Brent Oil Fund (BNO B+), United States Oil Fund (USO A) and ProShares K-1 Free Crude Oil Strategy ETF (OILK) ranked amongst the best performing candidates as oil price increased from near $22 to $35 this month. Oil prices have climbed up as a result of improving demand in the aftermath of the coronavirus pandemic.SPDR S&P Oil & Gas Equipment & Services ETF (XES B+) also made it to the list this month gaining 25% in the last month. The energy sector posted gains of more than 5% in the last month.Many Cannabis ETFs like Global X Cannabis ETF (POTX), The Cannabis ETF (THCX) and AdvisorShares Pure Cannabis ETF (YOLO) featured on this month’s best performers’ list, as consumers stockpiled weed prior to the lockdown. Medical cannabis is now being deemed as an essential commodity across the US, in lieu of the coronavirus outbreak.Energy MLP ETFs such as InfraCap MLP ETF (AMZA ) and Dorsey Wright MLP Index ETN (BMLP) were present on the list of best-performing ETFs as a result of a 5% monthly gain in the energy sector. Compare and contrast the two MLP ETFs using our ETF Comparison tool.iShares U.S. Home Construction ETF (ITB A-) was one of the contenders on the best monthly performers’ list as the real estate sector gained by more than 2% during the month. Construction materials, building products, and construction segments all posted gains of more than 1%, 8%, 0.2%, respectively, in the last month.To compare this month’s list with the one published on May 6, click here.Several natural gas ETFs like the United States Natural Gas Fund (UNG B-) and iPath Bloomberg Natural Gas Subindex Total Return ETN (GAZ C+) ranked amongst the worst performing candidates as natural gas price declined slightly from near $1.87 to $1.82 this month. Natural gas prices have fallen as a result of loss in demand, oversupply, and storage capacity fears. Check out our list of energy focused ETFs here.‌Many‌ ‌volatility‌ ‌ETFs‌ ‌like‌ ‌ProShares‌ ‌VIX‌ ‌Short-Term‌ ‌Futures‌ ‌ETF‌‌ (VIXY‌), ‌iPath S&P 500 VIX Short-Term Futures ETN ‌(‌VXX) ‌and VelocityShares‌IX‌ ‌Short-Term (‌VIIX‌) featured on ‌the‌ ‌list‌ ‌of‌ worst ‌monthly‌ ‌performers‌ ‌as‌ ‌volatility‌ declined ‌this‌ ‌month.‌ ‌VIX,‌ ‌the‌ ‌CBOE‌ ‌volatility‌ ‌index has declined‌ ‌from‌ ‌near‌ 34 to 28 during‌ ‌the‌ ‌month.‌ Volatility‌ has reduced as lockdown has been relaxed and there has been no resurgence of the virus in the U.S.‌ ‌Check out our list of volatility indexes here.Several ETFs focusing on Asia-Pacific countries like Global X MSCI China Real Estate ETF (CHIR), Global X China Financials ETF ‌(CHIX C) and iShares MSCI Hong Kong ETF (EWH A) were worst performing ETFs this month, as China moves ahead with its security bill for Hong Kong. Tensions between the U.S. and Chinese governments also escalate.Several long-term treasury note ETFs like PIMCO 15 Plus Year U.S. TIPS Index ETF (LTPZ C) ‌and iShares 20 plus Year Treasury Bond ETF (TLT B-) also made it to the list as the yield on U.S. 10-year Treasury note increased from 0.644 percent to 0.67 percent this month.Worst Performing ETFsPlease note that this list is updated on a monthly basis.For more ETF analysis, make sure to sign up for our free ETF newsletter.Disclosure: No positions at time of writing.

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