5 Best-Performing Sector ETFs of August

Market Performance - The S&P 500 advanced 1.5% in August, marking its fourth consecutive monthly gain [1] - The Dow Jones rose 3.2% during the same period, also achieving its fourth successive monthly increase [1] - The Nasdaq gained 1.6%, notching its fifth consecutive monthly rise, the longest winning streak in nearly a year and a half [2] - Small-cap stocks, represented by the Russell 2000, surged about 7% in August, marking its fourth consecutive monthly gain and the strongest streak in over four years [2] Inflation and Consumer Sentiment - The personal consumption expenditures price index indicated core inflation at a seasonally adjusted 2.9% in July, higher than June and the highest increase since February [3] - Consumer sentiment fell to a three-month low in August, driven by tariff-related concerns and inflation expectations [4] Federal Reserve Actions - Despite firmer inflation readings, there is an 86.4% chance of a quarter-point rate cut in September, reflecting expectations of easing monetary policy due to a slowing labor market [5] Cryptocurrency Market - Ethereum prices jumped about 26% over the past month, driven by strong institutional demand and factors like staking yields and Layer 2 scaling [6] - Bitcoin mining stocks also gained significantly, contributing to the overall attention on the crypto space in August [11] Cannabis Industry - Cannabis stocks and ETFs saw significant gains in August, with Roundhill Cannabis ETF up 83.9% and AdvisorShares Pure US Cannabis ETF up 80.8%, following hints from President Trump about potential reclassification of marijuana [9][10] Materials Sector - Various materials ETFs surged in August, including VanEck Rare Earth and Strategic Metals ETF up 27.8% and Sprott Lithium Miners ETF up 25.7%, driven by safe-haven demand and higher industrial usage [12] Healthcare Sector - The iShares US Healthcare Providers ETF rose 15.7%, largely due to a 29% gain in UnitedHealth Group Inc shares, which constitute about 22.85% of the ETF [13] Industrials Sector - The Procure Space ETF increased by 15%, spurred by SpaceX's successful launch of its Starship rocket and growing interest in the space sector [14]