Despite the slowing demand for oil on a global level, the ongoing conflict between OPEC members regarding oil production levels and possible military conflict in Iran support a positive outlook for ETFs such as the iShares S&P Global Energy Sector Index Fund (NYSEArca: IXC). S&P Capital IQ also ranks the Market Vectors OIl Services ETF (NYSEArca: OIH) overweight. [Using Oil ETF to Hedge Against Middle East Risks]
PowerShares KBW Bank Portfolio (NYSEArca: KBWB) is another ETF ranked overweight by S&P Capital. Regional banks, diversified banks and other financial service companies are represented in the index. This ETF managed a 17% gain despite the second quarter pullback for the financial sector, reports Rosenbluth. [Equity ETF Performance Slides After Big First Quarter]
SPDR S&P Biotech (NYSEArca: XBI) is an ETF ranked overweight by S&P Capital as the sector has managed to remain strong amid macroeconomic headwinds, Benzinga reports on MarketWatch. In the future, new drug approvals and a pick up in merger and acquisition activity supports the outlook. [Biotech ETFs Break Out to All Time Highs Before Supreme Court Decision]
Tisha Guerrero contributed to this article.