What September Slump? 5 ETFs to Play Now

Market Overview - September is historically the worst month for U.S. stocks, with the S&P 500 retreating 56% of the time by an average of 1.17% since 1927 [1] - This September may differ due to a high probability of a Fed rate cut, which could support market strength despite seasonal weaknesses [2] Fed Rate Cut Probability - There is currently an 86.9% probability of a 25-basis point rate cut by the Fed in September, which could lead to a weaker dollar, falling bond yields, and rising stock prices [4] Earnings and Economic Outlook - The overall earnings picture remains stable as the Q2 earnings season concludes, with favorable earnings revisions trends noted for Q3 2025 and the last quarter of the year [5] - Despite concerns about a bubble in the AI sector, the boom continues, providing a positive backdrop for investors entering September [5] ETFs in Focus - Financial Select Sector SPDR ETF (XLF) is highlighted as a strong buy, with modest increases in estimates for several sectors including Finance, Tech, and Energy since the start of Q3 [7] - ALPS OShares U.S. Quality Dividend ETF (OUSA) is ranked as a buy, focusing on large and mid-cap dividend-paying issuers, offering safety in economic downturns [9] - VanEck Retail ETF (RTH) is rated as hold, benefiting from decent inflation levels and retail sales momentum, particularly during back-to-school shopping [10] - VanEck Gold Miners ETF (GDX) has seen gold prices rise over 4% in the past month, driven by Fed rate cut hopes and increased central bank demand [11][12] - First Trust NASDAQ Cybersecurity ETF (CIBR) is positioned well due to the shift towards cloud computing and heightened demand for cybersecurity solutions amid geopolitical tensions [13]