ETFs tracking consumer cyclicals, financials and healthcare stocks are the best-performing sectors in 2013. These sector trends are being driven by a strengthening economy and aging Baby Boomers.
Financial Select Sector SPDR (NYSEArca: XLF), Consumer Discretionary Select Sector SPDR (NYSEArca: XLY) and Health Care Select Sector SPDR (NYSEArca: XLV) are leading the way this year among the nine major U.S. sectors.
They are outperforming the S&P 500 by about 8 percentage points or more, as the chart below illustrates.
Within cyclical sectors, financial and consumer discretionary ETFs are outperforming this year on improving sentiment and economic data. Americans are also cleaning up their balance sheets and beginning to borrow more after the financial crisis. [Financial and Cyclicals ETFs Flex Muscle on Improving Consumer, Credit]
Meanwhile, healthcare ETFs are rallying on a key demographic trend. [Investors Flocking to Healthcare ETF]
“There is a healthcare revolution. In their final act of vanity and vainglorious selfishness, the Boomers shall now attempt to live forever,” wrote Josh Brown at The Reformed Broker blog in a May post. “They will replace every part of themselves and seek to rejuvenate the rest. They will spend incomprehensible sums on this and fortunes will be made.”
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.