May 19, 2008 at 6:00 am by Tom Lydon
Statistics reveal that financial advisors are starting to prefer sector-focused exchange traded funds (ETFs) over individual stocks. Broad-based ETF assets are down lately due to the state of the market, reports Jesse Emspak for Investor’s Business Daily.
With an inflow of $11.1 billion so far this year, industry-based ETFs haven’t experienced the same losses as the three major indexes and the outflows that have hit broad-based ETFs.
Equity ETFS pale in comparison, with outflows at $18.1 billion year-to-date.
Sector ETFs can be a great way to target a particular industry while protecting yourself from some of the risks in choosing a single stock. Among the top-performing sector funds year-to-date are:
- B2B Internet HOLDRs (BHH), up 26.2% year-to-date
- iShares Dow Jones Transportation Average (IYT), up 18.5% year-to-date
- SPDR S&P Homebuilders (XHB), up 14.4% year-to-date
Tags: Homebuilders, Real Estate, Sector ETFs, Technology, Transportation
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