State Street SPDR S&P 500 ETF Trust SPY added about 9.4% past month. State Street SPDR Dow Jones Industrial Avg ETF Trust DIA gained about 6%, and the Nasdaq-100-heavy ETF and Invesco QQQ Trust, Series 1 QQQ advanced about 14.6%.
The Iran war, the resultant rally in oil prices, tariff tensions, chances of renewed inflation and the resultant less-dovish Fed stance have shaped the markets in April. Let’s delve a little deeper.
The U.S. economy expanded at an annualized rate of 2.0% in Q1 2026, up from 0.5% in the previous quarter but below market expectations of 2.3%, according to a preliminary estimate, as quoted on tradingeconomics. Government spending grew 4.4%, recovering from a 5.6% contraction in Q4 of 2025, as activity resumed following the end of the government shutdown.
The annual inflation rate in the United States rose to 3.3% in March 2026, marking the highest level since May 2024 and a sharp increase from 2.4% in both February and January, as quoted on tradingeconomics. On a monthly basis, consumer prices rose 0.9%, the largest increase since June 2022, following a 0.3% gain in February.
Oil prices remained elevated after Donald Trump signaled plans to maintain a prolonged naval blockade on Iran. Negotiations have stalled, with Tehran refusing to reopen the critical Strait of Hormuz until the blockade is lifted, disrupting regional oil flows and heightening global supply concerns. United States Oil Fund LP USO has gained 18.4% over the past month (as of April 30, 2026).
The Q1 earnings season is shaping up with solid momentum, as companies not only beat consensus estimates but also signal resilience in the economy despite elevated energy costs and geopolitical risks, per the Earnings Trends issued on April 22, 2026. Strength has been particularly notable on the revenue side, both in growth rates and beat percentages (read: Forget Geopolitics: Bet on Earnings Growth & Invest in These Sector ETFs).
Looking ahead, Q2 earnings are projected to grow 19.8% year over year on 9.2% higher revenues, up from 17.1% projected growth at the end of March (read: Forget Geopolitics: Bet on Earnings Growth & Invest in These Sector ETFs).
Against this backdrop, below we highlight a few winning ETFs of the month of April.
Global X Hydrogen ETF HYDR – Up 55.3% past month
Optimism surrounding a potential long-term truce in the Middle East has lifted U.S. markets. However, the current energy crisis amid the Iran war has led several countries to opt for alternative energy sources. Hydrogen is one such option. Additionally, the expansion of the AI industry has increased the demand for clean and sustainable energy, with hydrogen emerging as a potential fuel.
State Street SPDR S&P Semiconductor ETF XSD – Up 46.3% past month
There was a broad-based rally in the chip sector. The Philadelphia Semiconductor Index has logged an impressive winning streak, adding value across the industry. Intel’s upbeat results added to the bullish sentiment.
Major semiconductor players benefiting from this surge include Broadcom (AVGO), Taiwan Semiconductor Manufacturing Company (TSM), Micron Technology (MU), Advanced Micro Devices (AMD), Intel and Texas Instruments (TXN).
VistaShares Artificial Intelligence Supercycle ETF AIS – Up 38.5% past month
The VistaShares Artificial Intelligence Supercycle ETF offers investors a strategic avenue to participate in the artificial intelligence Supercycle reshaping industries worldwide. The continued AI boom has led to an upswing in the fund. SK Hynix, Micron and Vertiv are three top stocks of the fund.
Roundhill Meme Stock ETF MEME – Up 37.2% past month
The Roundhill Meme Stock ETF seeks to provide capital appreciation. Meme stocks represent a unique force in today’s markets, where retail participation and rapid sentiment shifts play a role. Upbeat momentum in the market probably pushed the ETF higher.
Roundhill Cannabis ETF WEED – Up 25.0% past month
The U.S. Department of Justice and the Drug Enforcement Administration have recently moved FDA-approved marijuana-based products and state-regulated medical cannabis to Schedule III, while initiating an expedited review to consider broader reclassification from Schedule I, as quoted on Benzinga. An administrative hearing set for June 29, 2026, aims to fast-track the rulemaking process and provide clearer direction for research and medical applications.
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Invesco QQQ (QQQ): ETF Research Reports
State Street SPDR S&P 500 ETF Trust (SPY): ETF Research Reports
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA): ETF Research Reports
United States Oil ETF (USO): ETF Research Reports
State Street SPDR S&P Semiconductor ETF (XSD): ETF Research Reports
Global X Hydrogen ETF (HYDR): ETF Research Reports
Roundhill Cannabis ETF (WEED): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
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