Getting Strategic With Sector ETFs

The Technology Select Sector SPDR (NYSEArca: XLK), Vanguard Information Technology ETF (NYSEArca: VGT) and iShares U.S. Technology ETF (NYSEArca: IYW) all offer broad technology exposure. XLK has a 0.16% expense ratio, VGT has a 0.14% expense ratio and IYW has a 0.45% expense ratio. [Holiday Optimism Lifts Semiconductor ETFs to New High]

Lastly, investors can access the healthcare sector through the Health Care Select Sector SPDR (NYSEArca: XLV), Vanguard Health Care ETF (NYSEArca: VHT) and First Trust Health Care AlphaDEX Fund (NYSEArca: FXH). XLV has a 0.16% expense ratio, VHT has a 0.14% expense ratio and FXH has a 0.66% expense ratio.

Market observers are largely bullish on the equities market going into next year. For instance, BlackRock chairman and CEO Larry Fink stated that there’s a high probabiliy of stocks continue to strengthen as low inflation from falling oil prices will keep the Federal Reserve from pushing off rate changes.

“The best point for equity markets historically … is when you have rising earnings, low inflation and low but rising interest rates. That’s the sweet spot for equities,” Darrell Cronk, president of the newly formed Wells Fargo Investment Institute, said on CNBC. “Equity investors should enjoy where they sit right now.”

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

Max Chen contributed to this article.