A seasonal ETF is a type of exchange-traded fund that invests in assets that tend to perform well during specific seasons or time periods. These ETFs are designed to capture the cyclical trends of certain sectors or industries, which can be driven by factors such as weather patterns, consumer behavior, or market conditions.
For example, a seasonal ETF that invests in agricultural commodities like corn and wheat may perform well during the summer growing season, while a seasonal ETF that invests in retail stocks may perform well during the holiday shopping season in November and December.
Investors may use seasonal ETFs as part of a strategy to capitalize on these trends and potentially earn higher returns. However, it’s important to remember that past performance is not a guarantee of future results, and seasonal ETFs may not always perform as expected. It’s also important to do your own research and consult with a financial professional before making any investment decisions.
Seasonal ETF’s To Consider for Summer
Invesco DB Agriculture Fund (DBA): This ETF invests in agricultural commodities such as corn, wheat, soybeans, and sugar. The management fee for DBA is 0.89%. As of April 15, 2023, some of the top holdings in DBA include Corn Futures, Soybean Futures, and Wheat Futures.
Invesco Solar ETF (TAN): This ETF invests in solar energy companies. The management fee for TAN is 0.70%. As of April 15, 2023, some of the top holdings in TAN include Enphase Energy Inc, First Solar Inc, and Sunrun Inc.
First Trust Natural Gas ETF (FCG): This ETF invests in natural gas companies. The management fee for FCG is 0.60%. As of April 15, 2023, some of the top holdings in FCG include Cabot Oil & Gas Corp, Antero Resources Corp, and Chesapeake Energy Corp.
iShares Transportation Average ETF (IYT): This ETF invests in transportation companies. The management fee for IYT is 0.42%. As of April 15, 2023, some of the top holdings in IYT include Union Pacific Corp, FedEx Corp, and Norfolk Southern Corp.
iShares U.S. Home Construction ETF (ITB): This ETF invests in home construction companies. The management fee for ITB is 0.42%. As of April 15, 2023, some of the top holdings in ITB include D.R. Horton Inc, Lennar Corp, and NVR Inc.
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