Unmasking Q2 2023's Stars & Strugglers: Industry ETFs And Top Stock Standouts

As the second quarter comes to a close, it’s time to look at the performance of industry ETFs and the stocks that helped shape their respective sector returns.

With the S&P 500 Index, as represented by the SPDR S&P 500 ETF Trust SPY, up 6% during this time, investors are eager to know which industries have outperformed or lagged behind the overall market over the quarter.

Best Performing Industry ETFs in Q2 2023

The top five performing Industry ETFs in the second quarter of the year were:

5) First Trust Dow Jones Internet Index Fund FDN

• Description: FDN tracks the performance of the Dow Jones Internet Composite Index, providing exposure to leading internet companies.
• Performance quarter-to-date (as of June 26): 7.4%
• Top three holdings: Alphabet Inc. GOOG GOOGL (9.76%), Amazon.com Inc. AMZN (9.47%), Meta Platforms Inc. META (7.7%).
• Top three stock contributors (% added to industry quarterly performance): AMZN (2.5%), META (2.2%), Netflix Inc. NFLX (1.2%)

4) US Global Jets ETF JETS

• Description: JETS invests in the global airline industry, including airlines, manufacturers, and airport services, allowing investors to access the aviation sector.
• Performance quarter-to-date (as of June 26): 9.4%
• Top three holdings: Delta Air Lines, Inc. DAL (10.7%), Southwest Airlines Co. LUV (10.5%), American Airlines Group Inc. AAL (10.2%)
• Top three stock contributors: DAL (3.4%), United Airlines Holdings Inc. UAL (2.7%), SkyWest Inc. SKYW (2%).

3) iShares Expanded Tech-Software Sector ETF IGV

• Description: IGV aims to replicate the performance of the S&P North American Technology-Software Index, offering exposure to the software industry.
• Performance quarter-to-date (as of June 26): 10.4%
• Top three holdings: Adobe, Inc. ADBE (9.1%), Oracle Corp. ORCL (8.9%), Microsoft Corp. MSFT (8.5%)
• Top three stock contributors: ORCL (2.6%), ADBE (2.4%), MSFT (1.5%).

2) VanEck Vectors Semiconductor ETF SMH

• Description: SMH seeks to track the MVIS US Listed Semiconductor 25 Index, providing exposure to companies in the semiconductor industry.
• Performance quarter-to-date (as of June 26): 12.2%
• Top three holdings: NVIDIA Corp. NVDA (19.6%), Taiwan Semiconductor Manufacturing Company Ltd TSM (11.8%), Bradcom Inc. AVGO (5.1%)
• Top three stock contributors: NVDA (7.9%), AVGO (1.4%), TSM (1.2%)

1) iShares U.S. Home Construction ETF ITB

• Description: ITB invests in U.S. companies involved in home construction and improvement, allowing investors to participate in the housing sector.
• Performance quarter-to-date (as of June 26): 16.7%
• Top three holdings: D.R. Horton Inc. DHI (15.4%), Lennar Corp. LEN (12.8%), and NVR Inc. NVR (7.7%)
• Top three stock contributors: DHI (3.6%), LEN (2.3%), PulteGroup Inc. PHM (2.2%)

See Also: US Builders Are The Most Confident They’ve Been About New Single-Family Homes In 11 Months

Top Performing U.S. Industry ETFs For The Quarter

Worst Performing Industry ETFs in Q2 2023

The worst five performing Industry ETFs in the second quarter of the year were:

5) VanEck AgriBusiness ETF MOO

• Description: MOO seeks to replicate the performance of the MVIS Global Agribusiness Index, offering exposure to companies involved in various segments of the agricultural industry, including farming, fertilizers, equipment, and more.
• Performance quarter-to-date (as of June 26): down by 6.7%
• Top three holdings: Deere & Company DE (8.54%), Zoetis Inc. ZTS (8.3%), and Bayer Aktiengesellschaft BAYRY (6.95%).
• Worst 3 stock contributors: Nutrien Ltd. NTR (-1.1%), The Mosaic Company MOS (-0.5%), and Tyson Foods, Inc. TSN (-0.4%).

4) SPDR S&P Metals & Mining ETF XME

• Description: XME follows the S&P Metals & Mining Select Industry Index, investing in companies involved in metals and mining production.
• Performance quarter-to-date (as of June 26): down by 7.7%
• Top three holdings: Commercial Metals Company CMC (4.8%), Alpha Metallurgical Resources, Inc. AMR (4.7%), and Nucor Corp. NUE (4.6%).
• Worst three stock contributors: MP materials corp. MP (-0.9%), Alcoa Corp. AA (-0.8%), and Peabody Energy Corp. BTU (-0.7%).

3) SPDR S&P Regional Banking ETF KRE

• Description: KRE seeks to replicate the performance of the S&P Regional Banks Select Industry Index, providing exposure to regional banking companies.
• Performance quarter-to-date (as of June 26): down by 8.6%
• Top three holdings: New York Community Bancorp, Inc. NYCB (2.08%), Bank OZK OZK (2.06%), and Cullen/Frost Bankers, Inc. CFR (2.06%).
• Worst 3 stock contributors: First Horizon Corp. FHN (-0.9%), PacWest Bancorp PACW (-0.5%), and Valley National Bancorp VLY (-0.4%).

2) Invesco WilderHill Clean Energy ETF PBW

• Description: PBW aims to track the WilderHill Clean Energy Index, offering investors exposure to clean energy companies.
• Performance quarter-to-date (as of June 26): down by 9.3%
• Top three holdings: Bel Fuse Inc. BELFA (2.4%), Joby Aviation JOBY (2.3%), and Fluence Energy FLNC (2.04%).
• Worst 3 stock contributors: Workhorse Group Inc. WKHS (-0.5%), Blink Charging Co. BLNK (-0.4%), and Wallbox N.V. WBX (-0.4%).

1) Invesco Solar ETF TAN

• Description: TAN tracks the MAC Global Solar Energy Index, providing investors with exposure to companies involved in the solar energy industry.
• Performance quarter-to-date (as of June 26): negative by 11.8%
• Top three holdings: First Solar Inc. FSLR (9.9%), Enphase Energy, Inc. ENPH (9.4%), and SolarEdge Technologies Inc. SEDG (8.9%).
• Worst three stock contributors: ENPH (-2.1%), FSLR (-1.8%) and SEDG (-1.3%).

Read now: This Is What Whales Are Betting On First Solar

Worst Performing U.S. Industry ETFs For The Quarter