State Street Global Advisors Head of Research David Mazza joined ETF Trends Publisher Tom Lydon at the ETF.com Inside ETFs conference in Hollywood, Fla. to discuss sector ETFs that are benefiting from lower oil prices.
“As energy prices decrease, as oil and gasoline are lower, that’s a boost to the consumer,” said Mazza. “An interesting area to think about in the near-term is consumer discretionary and retail. There’s more money in consumers’ pockets.”
The Consumer Discretionary Select Sector SPDR (NYSEArca: XLY), the largest consumer discretionary ETF, is up nearly 3% and has added nearly $941 million in new assets.
Mazza also noted that despite lingering weakness in the oil patch, there are signs some advisors are seeing value in equity-based energy ETFs and are wading back into those funds.
Watch the video below to see the full interview.
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