Research firm MarketGrader compiles the indexes that underly the Spa Exchange Traded Funds (ETFs).

MarketGrader’s latest fundamental research indicates that the U.S. market is largely oversold in the wake of volatility, reports ETF Express.

Buy opportunities exist in particular in the information technology and industrials sectors. MarketGrader 100, and equal-weighted fundamental index, offers investors to a basket of 100 top-rated U.S. equities according to the analysis of attractiveness of the 5,700 U.S. equities using 24 fundamental factors.

High growth characteristics at low price-to-earnings ratios are part of the grading process.

Relative to the S&P 500, the index is overweight in cyclical sectors and underweight in defensive ones, according to Neil Michael, head of quantitative strategies at Spa ETF. He says that the index is well-positioned to take advantage of any economic stimulus package and further interest rate cuts from the Federal Reserve.

Tags: Federal Reserve, Financial, Sector ETFs, Technology