February 19, 2009 at 11:00 am by Tom Lydon
The stimulus plan is out, signed and ready to go, and the money is accounted for. Billions are spread out across several sectors, and the new funds could soon impact exchange traded funds (ETFs) that target those sectors.
Total spending is $317.2 billion. Across the sectors, which are some of the ETFs that could be reaping some rewards as the money kicks in? Whatever happens with these ETFs in the coming months, be sure to follow the trends and have an entry (and exit) strategy. We don’t get in until a fund is above its long-term trend line (the 200-day moving average).
The following sector rundown includes spending provisions of the bill, not tax provisions, according to CNN Politics.
- Transportation, housing and urban development; $57.1 billion iShares Dow Jones U.S. Real Estate Index Fund (IYR): down 13.3% over three months; down 20.3% over one month.
- iShares Dow Jones Transportation (IYT): down 19.2% in the last three months, down 8% in the last week.
- Federal and State Government; $45.472 billion iShares S&P National Municipal Bond Fund (MUB): up 0.5% over three months; up 0.02% in one week.
- Commerce, Justice and Science; $17.842 billion Biotechnology HOLDRs (BBH): up 4.1% over three months; up 0.1% over the last 1 week.
- Defense and Security; $16.4 billion PowerShares Aerospace and Defense (PPA): up 5.6% over three months; down 3.0% over one week.
- Agriculture and Rural Development; $15,986 billion PowerShares DB Agriculture (DBA): down 5.2% over three months; down 6.3% over one week.
- Energy and Environment; $98,234 billion Market Vectors Global Alternative Energy (GEX): down 0.3% over three months; down 8% over one week.
- Labor, Health and Education; $66.15 billion Health Care Select Sector SPDR (XLV): up 4.2% over three months; down 2% over one week.
Tags: Aerospace & Defense, Agriculture, Asset Class ETFs, Biotechnology, Bond ETFs, DBA, Energy, GEX, GLD, Green ETFs, Health Care, IYR, IYT, Municipal Bonds, Obama, PPA, Real Estate, Sector ETFs, SHY, Socially Responsible ETFs, Technology, Transportation, XLV
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