Top Performing Industry ETFs In June: Software Leads Returns, Chipmakers Attract Most Inflows

June closed on a high note for the stock market, with the S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, gaining 3.2%, despite significant disparities in sector and industry performances.

The technology sector, as tracked by the Technology Select Sector SPDR Fund XLK, led the 11 S&P 500 sectors in performance last month, surging 7.7% and achieving its strongest monthly gain this year.

In stark contrast, utilities lagged, with the Utilities Select Sector SPDR Fund XLU dropping 6.3%, marking the worst month since September 2023.

Top Performing Industry ETFs In June

The iShares Expanded Tech-Software Sector ETF IGV rallied 11.3% last month, topping the rankings among industry ETFs.

Hot on its heels was the VanEck Semiconductor ETF SMH, which climbed 8.4%, showcasing strong momentum in the semiconductor sector.

Since hitting its low in October 2023, the VanEck Semiconductor ETF has rallied by an astounding 87%, and over 200% since October 2022, reflecting the spectacular growth in AI-driven stocks.

Securing the third spot in terms of monthly performance, the SPDR S&P Biotech ETF XBI gained 4%.

Within the software sector, standout performers included Adobe Inc. ADBE, which surged by 24.9%, CrowdStrike Holdings, Inc. CRWD with a 22.1% increase, and Oracle Corporation ORCL, up by 20%.

Broadcom Inc. AVGO led chipmakers with a 21% rise. Universal Display Corporation OLED followed closely with a 19.7% increase, and Qorvo, Inc. QRVO posted an 18% gain.

Among chipmakers, Broadcom Inc. AVGO, Universal Display Corporation OLED and Qorvo, Inc. QRVO led gains, with performances of 21%, 19.7% and 18%, respectively.

In the biotech arena, Scilex Holding Company SCLX experienced a 78.8% spike, making it the top industry gainer. Alnylam Pharmaceuticals, Inc. ALNY surged by 63.7%, while Avidity Biosciences, Inc. RNA saw a robust 52% increase.

Top Performing Industry ETFs By Inflows In June

Examining fund flows, the VanEck Semiconductor ETF has emerged as a top choice for investors, attracting over $1 billion according to Tradingview data, and achieving its ninth consecutive month of inflows. Year-to-date the fund has registered $4.60 billion in net inflows.

The iShares Expanded Tech-Software Sector ETF pulled in approximately $480 million in June, breaking a six-month streak of outflows and registering its highest monthly inflows since September 2022. Yet, its year-to-date net flows are still negative, down by $1.15 billion.

The iShares Biotechnology ETF IBB collected $148 million in inflows last month, reflecting strong investor interest. Another industry witnessing robust inflows was represented by the Global X Copper Miners ETF COPX, which attracted about $130 million.

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