Cyclical Sector ETFs for an Improving Economy | Page 2 of 2 | ETF Trends

The iShares Transportation Average ETF (NYSEArca: IYT) includes a 23.4% weight toward railroad companies, 22.1% in delivery services, 18.6% in trucking, 15.4% in airlines, 10% in marine tranpsortation, 5.1% in commercial vehicles and 5.0% in transportation services. IYT is up 13.2% year-to-date. [Trendy Transportation ETFs]

The strengthening manufacturing sector is supporting industrials gains. The Industrial Select Sector SPDR (NYSEArca: XLI) is up 4.4% year-to-date. XLI top sub-sectors include aerospace & defense 25.4%, industrial conglomerates 18.6%, machinery 18.3%, road & railways 10.1% and air freight & logistics 7.2%. [Rising Factory Orders Support Industrials ETF Recovery]

Additionally, the iShares Russell 2000 ETF (NYSEArca: IWM), which follows the Russell 2000 index of small-cap stocks, is up 3.3% year-to-date.

Tech names have dominated among cyclical sector picks, with Technology Select Sector SPDR (NYSEArca: XLK) up 6.9% over the past three months. However, analysts believe that semiconductor makers could stand out, predicting an average 34% increase in profits for 2014, compared to 7.5% for the full S&P 500. For broad semiconductor exposure, investors can take a look at the SPDR S&P Semiconductor ETF (NYSEArca: XSD), which is up 23.2% year-to-date. [Tech ETFs Try to Perk up Ahead of Earnings]

For more information on market sectors, visit our sector ETFs category.

Max Chen contributed to this article.