ETF Buying Patterns Highlight Safety Trade | Page 2 of 2 | ETF Trends

There are some attractive points that give reasons to stick around in the S&P 500. For one, divided yields from the S&P 500 are around 2.1%, which beats the 10-year bond yield of 1.8%. In reality, investors that are fleeing equities and parking their cash in a 10-year T-bond ETF are getting a lower return.

Ideally, investors should adjust their expectations. Over the next decade, a lower annual return is likely, compared to the past 25 years, says Justice. By keeping sight of the condition the market is in and allocating the right mix to stocks and bonds, there will eventually be a payoff. [Tech ETFs and the Apple Effect]

According to the Morningstar Style Box, there is an obvious preference for large-cap and value stocks. In fact, large-cap value is trading at a price to fair value of around 86%, large-cap growth around 90% of fair value, adds Rawson. [ETF Chart of the Day: Industrials Sector]

A few ETFs that could make it worth staying in the equity market:

  • Market Vectors Oil Services ETF (NYSEArca: OIH)
  • Industrials Select Sector SPDR ETF (NYSEArca: XLI)
  • Vanguard Information Technology (NYSEArca: VGT)

Tisha Guerrero contributed to this article.