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Kensho Stats

These stocks could star in September

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Mario Tama | Getty Images

We ran a search using hedge fund analytics tool Kensho and found there were certain industry exchange-traded funds that tend to perform well in September.

Those very same industries have some current trends lining up in their favor heading into the month, which should interest investors even more in these for a trade.

We analyzed the performance of various industry ETFs during the last 10 Septembers and found that these were among the best and most consistent performers during what has been historically a tough month for the overall market.


Retail shares were the top performer historically during the month, followed by regional banks and technology shares, according to Kensho.

Right now, the sentiment in the market is that Friday's jobs report will confirm the economy is picking up again, clearing the way for the Federal Reserve to increase rates at least one more time this year.

Increased economic confidence should boost retail and technology shares, while higher rates will help shares of banks, whose profitability is linked to the yield curve.

These ETFs and their underlying members have conventional wisdom and seasonality on their side.

CNBC's parent NBCUniversal is a minority investor in Kensho.