Getting Strategic With Sector ETFs

Advisors and investors have an expanding array of sector exchange traded funds to use to express tactical views.

As advisors look ahead, they may consider using sectors in a diversified portfolio as they offer the right balance of capitalizing on potential opportunities and avoiding potential pitfalls. Sectors may also offer advisors a greater ability to navigate turbulent markets than style investing.

Scheduled for Thursday May 14 at 2PM Eastern time, the upcoming webcast Strategizing With Sectors will explore how advisors can maximize the benefits of sector ETFs in a rapidly changing market environment.

State Street Global Advisors (SSgA) Head of Research David Mazza, SSgA Research Strategist Jared Rowley and Swan Global Investments Randy Swan will join ETF Trends publisher Tom Lydon to explore tactical application of sector ETFs from SSgA’s well-known sector SPDR lineup, the largest and most heavily traded group of sector ETFs. [ETFs for Cyclical Trends]

At the end of last year, sector ETFs had nearly $200 billion in combined assets under management. Although advisors and investors have generally favored international ETFs in 2015, nearly $5 billion of new assets has flowed into sector funds year-to-date, according to State Street data.

“For instance, even with nearly a 60% forecasted decline in year-over-year earnings growth, the energy sector attracted the most flows. Perhaps the 19% pop in the spot price of oil for the month was the catalyst that pushed energy past health care, a market darling, for the top spot in year-to-date sector flows,” according to State Street. [April ETF Inflows]