The financial sector, which makes up 14.6% of the S&P 500, fell 1.3% Friday and was the second worst performing area of the day. The ETFS Zacks Earnings Large-Cap U.S. Index Fund, on the other hand, only allocates 6.75% to the financial sector.

Moreover, Zacks believes the industrial space will do well ahead as the sector benefits from low oil and continued economic growth. ZLRG includes 6.65% to industrial products, 6.75% to aerospace companies and 6.55% to transportation.

Mike McGlone, Director of Research at ETF Securities US, also believes that the quantitative model behind ZLRG and ZSML could also provide investors with added value. The two funds picks component stocks based on Zacks’ quantitative models through ranking and quality factors. The ETFs hold the highest ranking stocks that have the most significant positive changes in earnings estimates. Additionally, Zacks singles out non-cash components, or accruals, in each company’s reported earnings, selecting firms with the lowest sector-adjusted accruals. [A Small-Cap ETF That Targets Strong Earnings]

For more information on alternative index-based ETFs, visit our smart beta category.

Max Chen contributed to this article.

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