Top ETFs to Watch in July 2023: Prices and Performance Insights

In July 2023, standout ETFs such as BKCH, FEMB, PFFR, UNG, and FXC have demonstrated impressive 1-month returns, making them attractive options for investors seeking diversified and cost-efficient portfolio growth.

Exchange-traded funds provide a flexible investment vehicle that tracks specific indices, sectors, or commodities and trade like stocks on exchanges. This structure allows investors to gain exposure to various asset classes with ease and efficiency.

Key Highlights

• ETFs remain a cost-effective strategy to diversify investment portfolios across multiple asset categories.
• July’s top performers over the past month include BKCH, FEMB, PFFR, UNG, and FXC.
• Blockchain and natural gas ETFs have surged, driven by Bitcoin’s rally and rising energy prices.
• The Invesco CurrencyShares Canadian Dollar Trust (FXC) gained momentum following an unexpected rate hike by the Bank of Canada.

Below is an overview of the top-performing ETFs in equity, bond, fixed income, commodity, and currency sectors based on data as of June 28, 2023. This list excludes inverse and leveraged ETFs, as well as funds with assets under management below $50 million.

Equity ETF with the Highest 1-Month Return: Global X Blockchain ETF (BKCH)

• 1-Month Return: 16.58%
• Expense Ratio: 0.50%
• Dividend Yield: 0.65%
• Average Daily Volume (30 days): 124,007 shares
• Assets Under Management: $79.46 million
• Inception: July 12, 2021
• Issuer: Mirae Asset Global Investments Co., Ltd.

BKCH tracks the Solactive Blockchain Index, encompassing global firms engaged in blockchain technology, including digital asset mining and applications. The ETF’s largest sector allocations are technology (51.3%) and financials (27.41%).

Key holdings include Marathon Digital Holdings Inc. (MARA), Coinbase Global Inc. (COIN), and Hut 8 Mining Corp. (HUT). While BKCH does not hold cryptocurrencies directly, it has benefited from Bitcoin’s recent 8% price increase.

Bond ETF Leading 1-Month Performance: First Trust Emerging Markets Local Currency Bond ETF (FEMB)

• 1-Month Return: 5.01%
• Expense Ratio: 0.85%
• Dividend Yield: 5.71%
• Average Daily Volume (30 days): 71,770 shares
• Assets Under Management: $134.41 million
• Inception: November 4, 2014
• Issuer: First Trust

FEMB invests primarily in bonds issued or guaranteed by emerging market countries in their local currencies, making currency fluctuations a significant factor in returns. The fund includes bonds of various maturities and credit qualities, including unrated securities.

Top country exposures are Indonesia (15.17%), Brazil (12.47%), Malaysia (11.08%), and South Africa (10.89%).

Fixed Income ETF with Best 1-Month Return: InfraCap REIT Preferred ETF (PFFR)

• 1-Month Return: 5.85%
• Expense Ratio: 0.45%
• Dividend Yield: 8.57%
• Average Daily Volume (30 days): 15,421 shares
• Assets Under Management: $59.59 million
• Inception: February 7, 2017
• Issuer: Virtus Investment Partners

PFFR follows the Indxx REIT Preferred Stock Index, focusing on U.S.-listed preferred securities issued by REITs. It selects securities with yields above 3%, capping individual holdings at 10% and rebalancing semiannually.

Top holdings include Annaly Capital Management Inc. (NLY), Digital Realty Trust Inc. (DLR), and Digital Bridge Communications Corp.

Commodities ETF with Top 1-Month Return: United States Natural Gas Fund, LP (UNG)

• 1-Month Return: 15.96%
• Expense Ratio: 1.11%
• Dividend Yield: N/A
• Average Daily Volume (30 days): 17,663,625 shares
• Assets Under Management: $1.20 billion
• Inception: April 18, 2007
• Issuer: Marygold

UNG offers exposure to front-month natural gas futures, aiming to mirror the percentage changes in natural gas prices. When the near-month contract nears expiration, the fund switches to the next month’s contract.

The ETF primarily holds NYMEX-listed natural gas futures and may invest in forwards and swaps. Its recent gains reflect slower-than-expected increases in natural gas inventories.

Currency ETF with Best 1-Month Return: Invesco CurrencyShares Canadian Dollar Trust (FXC)

• 1-Month Return: 3.66%
• Expense Ratio: 0.40%
• Dividend Yield: 1.06%
• Average Daily Volume (30 days): 35,424 shares
• Assets Under Management: $92.88 million
• Inception: June 21, 2006
• Issuer: Invesco

FXC provides investors with direct exposure to the Canadian dollar by holding physical currency in a JPMorgan deposit account. This allows for Loonie exposure without the need for a foreign exchange account, though it carries credit risk due to lack of deposit insurance.

The fund saw increased interest after the Bank of Canada unexpectedly raised interest rates in early June to combat inflation.

Note: The information provided is for educational purposes and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.

Discover the latest news and current events in Markets News as of 07-07-2023. The article titled " Top ETFs to Watch in July 2023: Prices and Performance Insights " provides you with the most relevant and reliable information in the Markets News field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.

The information in " Top ETFs to Watch in July 2023: Prices and Performance Insights " helps you make better-informed decisions within the Markets News category. Our news articles are continuously updated and adhere to journalistic standards.