Currently, we are in a mid-cycle expansionary phase. Consequently, investors can expect sustained relative earnings growth in the technology and industrial sectors, according to the Fidelity strategists.
Year-to-date, the Technology Select Sector SPDR (NYSEArca: XLK) rose 2.5% and Fidelity MSCI Information Technology Index ETF (NYSEArca: FTEC) gained 3.2%. Meanwhile, the Industrial Select Sector SPDR (NYSEArca: XLI) was up 0.5% and Fidelity MSCI Industrials Index ETF (NYSEArca: FIDU) was 2.3% higher. [Investors Flock to Cyclical Sector ETFs]
Looking ahead, Fidelity also argues that investors could add some exposure to late-cycle industries, including energy and materials.
Year-to-date, the Energy Select Sector SPDR (NYSEArca: XLE) returned 5.2% and Fidelity MSCI Energy Index ETF (NYSEArca: FENY) increased 4.8%. Moreover, the Materials Select Sector SPDR (NYSEArca: XLB) added 3.7% and Fidelity MSCI Materials Index ETF (NYSEArca: FMAT) rose 3.6%.
For more information on market sectors, visit our sector ETFs category.
Max Chen contributed to this article.