ETF Power Rankings Archives Articles

As you can see from the steady band of green near the top of our rankings, there hasn't been much rotation across the industry group universe.

The same groups continue to lead — precious metal miners, along with growth areas like software, cybersecurity, and internet stocks.

On the flip side, Home Construction ($ITB) has been dragging on the market. It’s failed to reclaim a key support level, even as most major indices attempt to break above their pre-tariff crash highs.

Keep an eye on ITB in the coming weeks.

If even the weakest industry group can reclaim support, it leaves the bears with nothing to hold onto.

It’s a bull market when even the laggards are forced to move higher.

Last week, we highlighted the short-term breakout in crypto stocks.

As money has rotated back into U.S. markets and growth names, crypto-related equities have been clear beneficiaries — just look at the sharp, bullish run they’ve put in over the past few weeks.

But now, much like Technology ($XLK), which we discussed yesterday, Bitcoin ($BTC) is approaching a key resistance level after an impressive move higher.

This is a logical spot for recent gains to consolidate — a breather here wouldn’t be surprising before any potential breakout.

The strength of this rally has already revealed a lot about which assets are likely to lead once markets clear their tariff-driven highs. But in the short term, these resistance levels deserve respect.

Last week, we highlighted the failed breakdown in Technology ($XLK) relative to the S&P 500 ($SPY). Since then, XLK has rallied nearly +8% to close out the week.

This kind of pattern has been a hallmark of the broader bull market — breakdowns that don’t stick often lead to sharp reversals higher.

So the question now is: are we witnessing the start of another leg of outperformance from tech?

On a relative basis, it looks promising. But on an absolute basis, the picture is more nuanced.

XLK has surged +25% over the past month in a near-vertical move — and it’s only now running into potential resistance. A pause here to digest recent gains would be perfectly normal.

While the recovery in U.S. markets has been impressive, chasing strength at these levels isn’t our preferred play.

Instead, we’re watching closely to see how key indices react to what appear to be critical resistance zones.

Two weeks ago, we broke down the growth vs. value dynamic, noting that growth appeared ready to take the lead.

That pointed to opportunities in sectors like technology, consumer discretionary, and communications — areas poised for short-term outperformance.

Since then, we’ve seen that thesis play out. Money has been flowing into growth stocks as U.S. markets attempt to rebound from recent weakness. Just look at the Growth ($IWF) vs. Value ($IWD) ratio — it’s been rallying right alongside the S&P 500.

But the bigger question remains: will the secular trend toward growth continue to deliver?

With international markets — which tend to lean more heavily toward value — outperforming the U.S., we could be seeing early signs of a shift in capital toward value sectors.

In tomorrow’s edition, we’ll dive into the near-term outlook for technology — a major pillar of growth.

The next move could define how capital rotates in the second half of the year — and we’ll be ready for it.

Would you look at that — Greece ($GREK) just topped our global ETF Power Rankings.

Despite making progress on its debt issues, Greece remains relatively fragile compared to the rest of Europe. So what does it tell us when GREK is leading all global ETFs?

It’s up an impressive +35% year-to-date, while the S&P 500 has barely moved, up just +1.6%.

Take a look at how GREK has performed since the most recent tariff drama that weighed down global markets.

One of the most important themes shaping the 2025 investment landscape is the growing number of opportunities outside the U.S.

Forgotten markets — like much of the Eurozone — are surprising investors with their strength.

And we think that trend is just getting started.

The beauty of these rankings is their ability to pinpoint what’s moving and showing strength—giving us a chance to capitalize on the most profitable opportunities, right now.

But sometimes, the best setups take years to develop. Investors with a longer-term perspective often see their patience rewarded.

A prime example? Certain groups within healthcare, which have delivered impressive returns over time. The iShares U.S. Healthcare Providers ETF ($IHF) is a standout, with nearly +1,000% gains since the GFC lows.

However, in the past four years, it’s been flat.

While this space has been digesting those astronomical gains, the longer-term outlook looks stronger than ever.

Over the same period, while the broader market has surged by nearly +50%, $IHF has been dormant. But that could be about to change.

If $IHF breaks to new all-time highs, it would signal that this space is ready for the next leg higher—and investors could be positioned for substantial upside.

This could be the perfect moment to rediscover what’s been quietly brewing in healthcare.

Off the back of last week’s crypto rally, the Crypto Industry Innovators ETF ($ETF) closed at new highs.

As markets continue their recovery, crypto remains a critical theme to watch. We’re treating Bitcoin ($IBIT) like any of the Magnificent 7 stocks, and its performance is underscoring that it’s a legitimate vehicle for a bullish tech thesis.

But it doesn’t stop with Bitcoin. A diversified basket of crypto stocks offers even more beta—more leverage to this growing trend.

This aligns perfectly with the broader speculative growth theme, where high-beta plays like these are likely to be rewarded if risk appetite returns in any meaningful way.

If the market continues its recovery, crypto stocks stand to benefit from both the tech tailwinds and the speculative growth rebound.

The question isn’t whether to consider crypto—it’s how much beta you’re ready to embrace if risk appetite comes back to life.

Failed breakdowns are everywhere.

It’s been a recurring theme throughout this entire multi-year bull market—just when the bears appear to gain the upper hand, they drop the ball. Hard.

And every time they do, it’s our job as investors to strike—ruthlessly. That means getting long and leaning into strength while sentiment is still shaken.

Right now, money is flowing back into risk assets across the board. It’s starting to look like another textbook rinse-and-repeat of the many failed breakdowns we’ve seen in recent years.

Financials ($XLF) couldn’t hold their breakdown. Now they’re squeezing higher.

Communications ($XLC) tells the same story—back above support, and the path of least resistance is up, as long as we stay above that key level.

And perhaps the most important chart on our radar: Technology ($XLK) has also failed to break down relative to the broader market. That’s not just noise—it could be the early signal of tech reasserting itself as the leading sector.

We’ve seen this movie before. Failed breakdowns often lead to powerful upside moves.

The message here is simple: if the...

Large caps have been steadily outperforming in U.S. markets, even as growth stocks led the most recent leg lower.

But in a market like this, flexibility is everything. We need to stay nimble and open-minded—ready to give a variety of investment themes the benefit of the doubt.

Europe is a prime example. After over a decade of going nowhere, it’s finally giving the U.S. a serious challenge.

Back in the U.S., one area that's quietly caught our attention is mid caps—the often overlooked middle child of the size spectrum.

Relative to large caps ($SPY), mid caps ($MDY) are digging in at a critical support level. It’s a key battleground.

If this level holds, we could see renewed strength in the mid-cap space. But if it breaks? It may set the stage for a deeper rotation down the cap scale—into small caps—as markets look to find their footing after the recent correction.

As Europe is proving right now, leadership is up for grabs. The winners of the next leg higher may not look like the winners of the last.

Now is the time to watch closely.\

The market is...

As the weeks go by, the S&P 500 continues to slip in the global rankings.

It’s becoming harder to ignore the strength emerging overseas. International markets are flashing compelling opportunities—with attractive valuations and a clear resurgence in relative strength giving nimble investors plenty to work with.

Just look at Europe. It’s lit up in green. That’s relative strength in action.

After more than a decade of sideways action, Spain’s $EWP is breaking out to new all-time highs—defying the uncertainty weighing on U.S. equities.

Germany’s $EWG is doing the same—ripping to record highs.

Austria’s $EWO? New all-time highs as well.

Meanwhile, U.S. markets continue to wrestle with overhead resistance, struggling to reclaim its past glory.

With these long-term breakouts now taking shape abroad, it’s worth asking: Is the cycle of U.S. dominance finally running out of steam?

Last week we touched on Aerospace & Defense $ITA as it was closing on new all time highs.

Today, the ETF successfully resolved to new highs and is a key industry group that is leading the U.S. market higher.

While the broad U.S. indices have struggled to recover all their recent losses, groups like Aerospace & Defense $ITA are paving the way higher for the remainder of the U.S market.

So long as ITA is above 160, the bias is to the upside.

We’re here to make money.

That means we naturally focus on the strongest areas of the market. But there’s also valuable information—and opportunity—in watching the weakest.

When even the worst-performing groups can’t hold their breakdowns, it tells us market conditions might not be so bad after all.

Take the NexGen Economy ETF ($BLCN), for example.

It’s off to a rough start this year, down 22% YTD.

But here’s the kicker: it failed to hold its latest breakdown.

So what does it say when even the weakest thematic ETFs can’t break down?

Maybe the bears are losing their grip.