The Zacks Analyst Blog Highlights ITA, SOCL, GRID, XLC and XLI

Chicago, IL – July 3, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETF’s recently featured in the blog include: iShares U.S. Aerospace & Defense ETF ITA, Global X Social Media Index ETF SOCL, First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund GRID, Communication Services Select Sector SPDR Fund XLC and Industrial Select Sector SPDR XLI.

Here are highlights from Wednesday’s Analyst Blog:

Wall Street wrapped up the first half of 2025 on a high note, with the S&P 500 and Nasdaq Composite Index notching back-to-back record closing highs, marking a stunning turnaround after a tumultuous spring. Both the indices delivered returns of 5.5% each while the Dow Jones advanced 3.6%.

Given the broad-based rally, some ETFs gained in double digits in the first half. These have a solid Zacks ETF Rank #1 (Strong Buy) or #2 (Buy), suggesting outperformance in the coming weeks as well.

Markets plunged earlier this year after President Trump's sweeping tariffs in March and April triggered concerns about disrupted supply chains, rising prices and slower economic growth. However, things reversed in May and June, with a pause in tariffs followed by encouraging economic data and easing trade tensions. By the end of June, the market had surged back to record highs, though an increase in tensions in the Middle East kept stocks in check (read: 5 Sector ETFs That Beat the Market in June).

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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 has echoed last year's bull run, with artificial intelligence remaining a key driver. Technology and energy firms benefited most from AI demand. Corporate earnings have been strong while inflation is easing. May prices rose just 2.3% year over year and unemployment remains near historic lows.

Uncertainty still looms for the second half of the year. The pause on retaliatory tariffs, affecting a broad group of nations, is set to expire in July. Failure to reach agreements could trigger a new round of tariffs, threatening market sentiment and consumer confidence. The U.S. dollar has dropped to a three-year low, denting purchasing power.

Federal Reserve Chair Jerome Powell recently signaled that interest rate cuts might have already occurred if not for the economic impact of tariffs. He noted that the U.S. administration's trade policies are directly shaping the Fed's monetary policy decisions. There are chances of rate cuts starting in September if inflation moderates, and of multiple rate cuts in 2026 (read: End of 1H2025 Market Volatility: Why ETFs Are Headed for Gains).

We have profiled the above-mentioned ETFs in detail below:

iShares U.S. Aerospace & Defense ETF – Up 30.1%

iShares U.S. Aerospace & Defense ETF provides exposure to U.S. companies that manufacture commercial and military aircraft and other defense equipment by tracking the Dow Jones U.S. Select Aerospace & Defense Index. iShares U.S. Aerospace & Defense ETF holds 38 stocks in its basket with AUM of $8.2 billion and an expense ratio of 0.40%. It trades in an average daily volume of around 700,000 shares and has a Zacks ETF Rank #1 (read: Defense ETFs Soar Amid Rising Global Tensions).

Global X Social Media Index ETF – Up 26.5%

Global X Social Media Index ETF provides investors access to social media companies around the world and has amassed $135.3 million in its asset base. It tracks the Solactive Social Media Total Return Index, holding 50 securities in the basket with a heavy concentration on the top firms. Global X Social Media Index ETF charges 0.65% in annual fees and sees lower trading volumes of roughly 9,000 shares a day. The fund has a Zacks ETF Rank #2.

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund – Up 17.3%

First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund offers exposure to stocks in the grid and electric energy infrastructure sector. It follows the Nasdaq Clean Edge Smart Grid Infrastructure Index and holds 106 stocks in its basket. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund has accumulated $2.6 billion in its asset base and trades in a volume of 145,000 shares a day on average. It charges 56 bps in annual fees and has a Zacks ETF Rank #2.

Communication Services Select Sector SPDR Fund – Up 12.7%

Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services and has accumulated $23.8 billion in its asset base. It follows the Communication Services Select Sector Index and holds 23 stocks in its basket, with large positions in companies like Charter and Comcast. Communication Services Select Sector SPDR Fund charges 8 bps in annual fees and trades in an average daily volume of 6 million shares. It has a Zacks ETF Rank #1.

Industrial Select Sector SPDR – Up 12.6%

Industrial Select Sector SPDR targets the broad industrial sector and follows the Industrial Select Sector Index. XLI holds 78 stocks in its basket and is well spread out across sectors, with aerospace & defense, machinery, and ground transportation making up for a double-digit share each. Industrial Select Sector SPDR is the most popular ETF with AUM of $22 billion and an average daily volume of around 13 million shares. It charges 8 bps in fees per year and has a Zacks ETF Rank #1.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Industrial Select Sector SPDR ETF (XLI): ETF Research Reports

iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports

Global X Social Media ETF (SOCL): ETF Research Reports

First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID): ETF Research Reports

Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports

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

Zacks Investment Research