The
first
half
of
the
year
has
generally
been
good
for
the
market,
with
the
S
&
P
500
and
the
Nasdaq
repeatedly
reaching
record
highs.
Year-to-date,
the
S
&
P
500
is
up
around
13%
and
the
Nasdaq
has
risen
14.9%.
Will
markets
continue
soaring?
Analysts
are
split
as
it’s
uncertain
when
the
U.S.
Federal
Reserve
will
start
cutting
rates.
Much
will
depend
on
how
the
trajectory
of
inflation
data
goes
in
the
coming
months.
“US
recession
is
off
the
table
for
the
next
six
months,
and
leading
economic
indicators
suggest
a
broadening
of
global
growth,
undercutting
the
US
exceptionalism
narrative,”
Thomas
Poullaouec,
head
of
multi-asset
solutions
for
Asia-Pacific
at
T.
Rowe
Price,
said
on
Tuesday.
He
added
that
“the
future
path
of
inflation
is
key
to
navigate
successfully
the
second
half
of
the
year.
Inflation
has
been
challenging
to
predict
since
the
onset
of
the
pandemic
in
2020.
However,
it
is
becoming
evident
that
inflation
will
not
subside
as
quickly
as
central
banks
want,
and
there
is
a
meaningful
risk
of
its
reacceleration
due
to
a
resilient
labor
market
keeping
services
inflation
elevated.”
Ed
Clissold,
chief
U.S.
strategist
at
Ned
Davis
Research,
was
of
the
view
that
conditions
could
allow
the
Fed
to
“lower
rates
at
a
slow
pace,”
as
he
believes
that
economic
growth
could
moderate
without
turning
negative.
Against
that
uncertain
backdrop,
investors
might
be
looking
at
exchange-traded
funds
or
mutual
funds
to
diversify
their
investments.
CNBC
Pro
screened
the
20
top-performing
U.S.-domiciled
ETFs
and
actively
managed
funds
in
the
first
half
of
this
year
for
those
with
further
upside.
Morningstar
provided
the
list
of
top-performing
funds,
which
all
beat
the
S
&
P
500.
Using
FactSet,
that
list
was
screened
for
funds
that
analysts
give
10%
or
more
upside,
and
that
at
least
half
give
a
buy
rating.
Copper
and
mining
ETFs
were
big
winners
in
the
first
half
of
this
year,
with
four
showing
up
in
the
top
20
list.
Of
the
four,
however,
only
two
fit
the
screening
criteria:
Sprott
Junior
Copper
Miners
ETF
and
Global
X
Copper
Miners
ETF.
The
former
stood
out
as
having
the
highest
potential
upside
in
the
list
(45.8%)
and
a
high
buy
rating
(79%).
Unsurprisingly,
growth-focused
funds
also
dominated
the
list,
as
the
tech
and
artificial
intelligence
boom
continued
to
push
markets
higher
this
year.
One
country-specific
ETF
made
it
to
the
list:
the
iShares
MSCI
Turkey
ETF.
It
had
among
the
top
five
half-year
returns,
at
29.55%
as
of
May
31.
It
also
has
the
second-highest
potential
upside
at
25.7%,
and
a
decent
70%
buy
rating.
One
category
that
is
not
typically
an
investor
favorite
also
showed
up:
the
small-
and
mid-cap-focused
First
Trust
RBA
American
Industrial
Renaissance
ETF.
It
tracks
the
Richard
Bernstein
Advisors
American
Industrial
Renaissance
Index,
which
measures
the
performance
of
small-
and
mid-cap
U.S.
companies
in
the
industrial
and
community
banking
sectors.