3 ETFs That Historically Perform Well in the Final Weeks of May

For all the talk about selling in May and going away, investors would be disappointed if they followed that folksy old market wisdom because, as of May 15, the S&P 500 (SNPINDEX: ^GSPC) is up 2.5% this month.

Going beyond that data point, selling in May isn't always good advice, because history shows the fifth month of the year is often kind to stocks. From 2006 to 2025, the S&P 500 closed higher 75% of the time in May, notching an average gain of 0.8%. That's good enough to rank May among the seven best months in which to own stocks.

This trio of ETFs could shine in late May and beyond. Image source: Getty Images.

The point is, some of the most oft-cited seasonal ideas don't bear fruit, and that's particularly true with perceived summer trends. For all the yearly conversation about summer travel potentially boosting some industries, the reality is that only the first days of May are included in one of the best stretches in which to own airline stocks. Likewise, some oil stocks are surprising summertime disappointments.

Don't fret because there are plenty of well-known exchange-traded funds (ETFs) that have the makings of late-May winners, and some may prove durable deep into the summer.

Tech? Yes, tech.

All the talk about May kicking off a risk-off period might imply bad news for tech stocks, but the reality is different. In fact, we're smack-dab in the middle of one of the best times of the year in which to own tech equities, and that could bode well for the Invesco NASDAQ 100 ETF (NASDAQ: QQQM).

As its name implies, this $91.4 billion ETF, the lower-cost alternative to the Invesco QQQ (NASDAQ: QQQ), tracks the Nasdaq-100. Due in part to significant overlap with the S&P 500, the Nasdaq-100 also performs well in May, posting an average gain of 1.6% in the fifth month of the year over the past two decades.

There's a caveat with this Invesco ETF as it relates to buying it now in anticipation of late-May gains. Traders might have to be nimble because June is usually one of the worst months of the year for the Nasdaq-100. But if market participants can make it through that, they may be rewarded the next month because July is often one of the strongest months for this benchmark.

Time to play defense

With the summertime blues often ushering in reduced risk appetite, it's not surprising some investors will examine the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT: XLP) before the end of this month. They have good reasons to do just that.

Some experts are concerned that the market is becoming one big artificial intelligence (AI) trade, encouraging investors to examine segments that aren't intertwined with it. Consumer staples stocks fit the bill.

Up 10.5% year to date, this consumer staples ETF is quietly outperforming the S&P 500, by more than 200 basis points at that. But that doesn't mean this fund is running out of gas. Historically, the best time of year for consumer staples stocks is late April through around Thanksgiving. So if the past repeats itself this year, this ETF may have strong months ahead.

Prescribe this Vanguard ETF

Count healthcare stocks among those that often thrive at this time of the year. Confirming the near-term allure of the Vanguard Health Care ETF (NYSEMKT: VHT), one of the largest ETFs in this category, are the following two historical data points.

First, we're not even a month into the best time of year to be long on healthcare stocks. Second, pharmaceutical stocks, which account for nearly a third of this ETF's portfolio, enter their best seasonal stretch in August, perhaps signaling this Vanguard fund is worth scoping out today in advance of a strong summer run. This sector also checks the box for AI avoidance, as it's one of the least correlated with the AI trade.

This $16.1 billion Vanguard ETF may also be a good idea for long-term investors because it offers an expansive lineup of 405 stocks and a low expense ratio of 0.09% per year, meaning just $9 in fees on a $10,000 investment.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.