Key ETF Winners: A Week of Sector Rotation and Policy Shifts

Last week’s market dynamics painted a mixed picture across major indices. While the Dow Jones climbed 1.1%, both the S&P 500 and Nasdaq faced headwinds, declining 0.6% and 1.6% respectively. The weakness in technology stocks created significant ripples through growth-focused vehicles, with the State Street Technology Select Sector SPDR ETF [XLK] sliding 2.5% and the Roundhill Magnificent Seven ETF [MAGS] retreating 1.7%.

What Dragged Down the Broader Market?

Technology equities bore the brunt of selling pressure. Oracle’s disappointing revenue report triggered a sharp 14% drop, creating a cascading effect on semiconductor and AI-related names including NVIDIA and Micron. Similarly, Broadcom tumbled approximately 11% despite posting strong earnings guidance, as investor concerns over elevated capital expenditure and slower-than-expected AI monetization weighed on sentiment.

The Fed’s Policy Decision and Market Implications

Central bank action took center stage as the Federal Reserve completed its final rate reduction of the year, lowering the benchmark federal funds rate to 3.5%-3.75%. Despite this easing move, policymakers remain cautious. The labor market has softened while inflation remains approximately one percentage point above the Fed’s 2% target. Looking ahead to 2026, officials project just a single rate cut—a notably restrained stance that signals a more hawkish pause in the cutting cycle.

Exchange-Traded Funds That Outperformed

Several thematic top performing etfs emerged as clear winners amid the broader volatility:

Cannabis Sector Surge

The legalization narrative shifted dramatically when reports emerged of potential federal marijuana reclassification from Schedule I to Schedule III status. This regulatory optimism triggered explosive gains:

• Roundhill Cannabis ETF [WEED] – Up 51.2%
• Amplify Seymour Cannabis ETF [CNBS] – Up 51.0%

Major cannabis operators benefited substantially, though final policy implementation remains uncertain.

Precious Metals and Industrial Demand

Silver mining equities rallied sharply, reflecting robust demand from solar installations, EV batteries, electronics manufacturing, and AI infrastructure. Concurrent supply constraints added to the bullish case:

• Global X Silver Miners ETF [SIL] – Up 8.4%
• Amplify Junior Silver Miners ETF [SILJ] – Up 7.6%

Gold mining continued its upward trajectory as the U.S. dollar weakened:

• VanEck Junior Gold Miners ETF [GDXJ] – Up 7.1%
• SPDR Gold Trust [GLD] – Up 2.2%

Platinum broke through $1,700 per ounce, reaching its highest level since 2011, propelling:

• GraniteShares Platinum Trust [PLTM] – Up 6.3%

Market observers note that while 2025 faces a projected 69,200-ounce deficit, 2026 could achieve equilibrium with a modest 20,000-ounce surplus.

Space Economy Gets Its Moment

The entire space sector benefited from renewed investor enthusiasm and notable corporate developments. Rocket Lab Corp [RKLB] surged 22.8% following successful Neutron rocket development milestones and new funding from the Canadian Space Agency. Speculation around a potential $1.5 trillion SpaceX IPO in 2026 further energized the space investing narrative:

• Procure Space ETF [UFO] – Up 7.8%

Healthcare Innovation Play

The healthcare sector garnered attention through innovative therapeutic approaches:

• Roundhill GLP-1 & Weight Loss ETF [OZEM] – Up 6.3%

As an actively-managed vehicle charging 59 basis points annually, this fund captures the rapidly evolving weight loss pharmaceutical landscape, positioning investors in what many view as a generational healthcare breakthrough.

Market Takeaway

The week underscored how policy expectations, regulatory shifts, and thematic investment trends can diverge dramatically from broader market movements. While technology faced structural challenges, alternative sectors—from regulated cannabis to space infrastructure to therapeutic innovation—attracted fresh capital flows. This rotation underscores the importance of sector-specific analysis when constructing diversified top performing etfs strategies.