This Month’s Top-Performing ETFs: Politics, Fed Rate Cut Hopes Ignite 30%-Plus Rally In These 2 Funds

Throughout November, financial markets experienced a significant upswing, with both stocks and bonds on the rise.

This surge was primarily driven by investors increasing their bets on potential Federal Reserve rate cuts in the upcoming year. Inflation continues to cool and Fed policymakers lean toward more dovish remarks.

This optimism was reflected across various segments of the market. Let’s break down the top-performing exchange-traded funds (ETFs) across various asset classes, including country equities, U.S. equity sectors, thematic equities, bonds, and commodities.

Best Country ETFs In November

Global X MSCI Argentina ETF (NYSE:ARGT) up 31.5%: Topping the list, the ARGT ETF experienced a remarkable surge, buoyed by the electoral victory of ultra-liberalist Andrei Milei in Argentina. This political shift sparked a wave of bullish sentiment in Argentine stocks.
iShares MSCI Israel ETF (NYSE:EIS) up 16.6%: Israeli equities also witnessed substantial growth. This rise was supported by a stabilization in the shekel, thanks to the intervention by the Bank of Israel following the start of conflict with Hamas.
iShares South Korea ETF (NYSE:EWY) up 14.5%: South Korean stocks rallied following the financial regulator’s decision to re-impose a full ban on short-selling, providing a boost to the market.

Chart: ARGT ETF Posted Its Best-Performing Month In November

Best U.S. Equity Sector ETFs In November

Technology Select Sector SPDR Fund (NYSE:XLK) up 12.2%: The technology sector emerged as the front-runner in November. This uptrend is linked to the improved investor outlook and the anticipated decline in Federal Reserve interest rates.
Real Estate Select Sector SPDR Fund (NYSE:XLRE) up 11.9%: Real estate stocks also rallied in response to expectations of lower interest rates next year, which could provide a much-needed respite to a sector that has been severely hit by the elevated mortgage rates.
Financial Select Sector SPDR Fund (NYSE:XLF) up 10.5%: The financial sector, particularly bank stocks, showed robust gains, fueled by the prospect of increased lending activity amid borrowing costs next year.

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Best Thematic ETFs In November

ARK Innovation ETF (NASDAQ:ARKK) up 31.4%:…