Top 6 ETFs To Watch As Wall Street's Strongest Six Months Begin

Right now ahead of Halloween, the real suspense might be in ETF investing strategies. With markets seesawing between hopes for rate cuts and the resilience of earnings, investors are dusting off one of Wall Street’s spooky old sayings:  Sell in May and go away.

The so-called Halloween Effect, a pattern where stocks outperform between November and April, might sound like folklore. But the data has teeth. Yardeni Research’s historical analysis of the S&P 500 shows that from 1928 to 2025, returns averaged 5.2% from November to April, which is double the 2.6% seen in the May-October stretch. That’s no ghost story-it’s nearly a century of behavioral finance on display.

ETFs To Play The Halloween Rally

With investors eyeing this six-month “sweet spot,” some ETF themes look particularly well-positioned to capitalize on the seasonal cheer.

Healthcare: The Defensive Potion

Even as markets brighten, volatility could be lurking around the corner. Healthcare’s reputation as a defensive safe haven, backed by strong job growth and biotech optimism, makes Health Care Select Sector SPDR ETF (NYSE:XLV) and SPDR S&P Biotech ETF (NYSE:XBI) appealing bets through winter. Both funds have been gathering momentum in the weeks leading up to Halloween, with XLV gaining more than 4% in the past month and XBI gaining over 12% during the same period.

Financials Rise From The Crypt

Banks could finally get a pulse as the yield curve steepens and Fed easing expectations lift margins. For those betting on a financial rebound, iShares U.S. Financials ETF (NYSE:IYF) and iShares U.S. Financial Services ETF (NYSE:IYG) may offer a treat, not a trick. JPMorgan Chase & Co (NYSE:JPM) holds one of the top positions in both funds. Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC) are also among the premium holdings in both funds.

Chips Keep The Magic Alive

AI continues to conjure up billion-dollar opportunities for chipmakers. Tight supply and surging data-center demand position VanEck Semiconductor ETF (NASDAQ:SMH) and VanEck Fabless Semiconductor ETF (NASDAQ:SMHX) for another strong spell, even after a 40%-50% run in 2025 so far.

Bottom Line

If history repeats itself, this year’s Halloween might not be only about candies but also about grabbing the sweetest returns for the year.

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