The U.S. equities markets are hovering near record highs, making it harder to single out winners next year. Nevertheless, investors can utilize exchange traded funds to pick and choose broad market sectors.
Thomas Lee, founder of Fundstrat Global Advisors and former chief U.S. equity strategist at J.P. Morgan, argues that it will be challenging to pick winners in 2015 but still remains bullish with the broader equities market, reports Matthew J. Belvedere for CNBC.
Next year, “there should be much more pronounced divergence in sectors,” Lee said on CNBC.
Specifically, Lee argues that financial, technology and health care sectors could outperform in 2015.
Instead of trying to shift through the thousands of stocks that make up these sector, investors can utilize a broad sector-specific ETF to capture these areas.
For financial exposure, investors can use the Financial Select Sector SPDR (NYSEArca: XLF), Vanguard Financials ETF (NYSEArca: VFH) or iShares U.S. Financials ETF (NYSEArca: IYF). XLF has a 0.16% expense ratio, VFH has a 0.19% expense ratio and IYF has a 0.45% expense ratio. [Financial ETFs: Banks See Best Revenue Growth in Five Years]