5 American ETFs Witnessing Gains Ahead of Independence Day

The U.S. stock market wrapped up the first half of 2025 with back-to-back record highs. It rebounded sharply from a turbulent spring marked by trade tensions and economic uncertainty that had dragged major indexes deep into the red in April. The S&P 500 and Nasdaq Composite Index delivered returns of 5.5% each, while the Dow Jones advanced 3.6% (read: S&P 500 Hits New Record Close: Why ETFs Could Gain More). 

While there are winners in many corners of the space, we have highlighted five ETFs that have been seeing fireworks this year. These are Global X Defense Tech ETF SHLD, ARK Next Generation Internet ETF ARKW, VanEck Social Sentiment ETF BUZZ, iShares U.S. Broker-Dealers & Securities Exchanges ETF IAI and First Trust US Equity Opportunities ETF FPX.

These funds focus exclusively on U.S. equities and deserve the attention of investors seeking a domestic tilt to their portfolio ahead of the July 4 holiday.

After falling more than 19% in April from its previous all-time high, the S&P 500 index touched new records just two months later and topped the 6,200 milestone. It is one of the fastest recoveries in recent history. The latest rally echoed last year’s bull run, with artificial intelligence remaining a key driver. Technology and energy firms benefited the most from AI demand. 

Additionally, signs of de-escalation provided a major boost. President Trump's temporary suspension of proposed tariffs in late April alleviated investor fears over supply chain disruptions and import cost inflation. This shift not only stabilized multinational stocks but also reignited confidence in industrial and consumer sectors.

Corporate earnings have been strong while inflation is easing. May prices rose just 2.3% year over year. Unemployment remains near historic lows.
  
Moreover, Federal Reserve Chair Jerome Powell signaled a more accommodative stance during his June meeting, hinting that interest rate cuts could arrive later in the year. The central bank’s shift from a hawkish to dovish tone reassured investors that monetary policy would support the recovery.

ETFs in Focus

Global X Defense Tech ETF (SHLD) – Up 57.6%

With AUM of $3 billion, Global X Defense Tech ETF seeks to invest in companies positioned to benefit from the increased adoption and utilization of defense technology. It tracks the Global X Defense Tech Index and holds 42 stocks in its basket. Global X Defense Tech ETF charges 50 bps in annual fees and trades in an average daily volume of 1.4 million shares.

ARK Next Generation Internet ETF (ARKW) – Up 33.8%

ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 42 stocks in its basket. ARK Next Generation Internet ETF has amassed $2.1 billion in its asset base and charges 82 bps in annual fees. It trades in an average daily volume of 332,000 shares (read: Cathie Wood's ARKK ETF Turns Red Hot in June: Here's Why). 

VanEck Social Sentiment ETF (BUZZ) – Up 19.7%

VanEck Social Sentiment ETF offers exposure to 76 large-cap U.S. stocks, which exhibit the highest degree of positive investor sentiment and bullish perception based on content aggregated from online sources, including social media, news articles, blog posts and other alternative datasets. It tracks the BUZZ NextGen AI US Sentiment Leaders Index, charging investors 76 bps in annual fees. BUZZ has amassed $65.8 million and trades in an average daily volume of 22,000 shares. 

iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) – Up 19.3%

iShares U.S. Broker-Dealers & Securities Exchanges ETF offers exposure to the 32 U.S. investment banks, discount brokerages, and stock exchange firms by tracking the Dow Jones U.S. Select Investment Services Index. iShares U.S. Broker-Dealers & Securities Exchanges ETF has accumulated $1.4 billion in its asset base and trades in a moderate volume of nearly 139,000 shares a day. The product charges 40 bps in fees per year from investors and has a Zacks ETF Rank #4 (Sell) with a High risk outlook.

First Trust US Equity Opportunities ETF (FPX) - Up 18.9%

First Trust US Equity Opportunities ETF focuses on the largest, most liquid and best-performing U.S. companies that have recently gone public, including IPOs and spin-offs, as well as select acquirers of recent IPOs. It follows the IPOX-100 U.S. Index and holds 100 securities in its basket. First Trust US Equity Opportunities ETF is widely spread across sectors, with information technology, industrials, and financials accounting for double-digit exposure each. It has $963.2 million in AUM and trades in a volume of about 25,000 shares per day. FPX charges 61 bps in fees a year.

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Global X Defense Tech ETF (SHLD): ETF Research Reports

ARK Next Generation Internet ETF (ARKW): ETF Research Reports

iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI): ETF Research Reports

First Trust US Equity Opportunities ETF (FPX): ETF Research Reports

VanEck Social Sentiment ETF (BUZZ): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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