As we mull over ideas after the market correction, investors should look at targeted markets and exchange traded fund segments to capitalize on potential opportunities.
For instance, JPMorgan Private Bank’s Steven Rees singled out the consumer discretionary and health care sectors after the two areas fell off 9% this year, despite delivering positive earnings growth, reports Tom DiChristopher for CNBC.
“I think what we see is a lot of decoupling between parts of the market where the fundamentals have actually been quite strong, looking at the more domestic sectors like consumer discretionary and health care,” Rees told CNBC.
Investors can also gain broad exposure to these sectors through ETF options. For instance, the iShares US Consumer Services ETF (NYSEArca: IYC), Vanguard Consumer Discretionary ETF (NYSEArca: VCR) and Consumer Discretionary Select Sector SPDR (NYSEArca: XLY) provide access to the consumer discretionary sector.
For health care exposure, investors can take a look at the Health Care Select Sector SPDR (NYSEArca: XLV), iShares U.S. Healthcare ETF (NYSEArca: IYH), Vanguard Health Care ETF (NYSEArca: VHT) and Fidelity MSCI Health Care Index ETF (NYSEArca: FHLC).
Moreover, the investment bank has targeted large-cap growth stocks in the tech space as one of its preferred investments.
ETF investors can also tap into this sector through options like the Technology Select Sector SPDR (NYSEArca: XLK), iShares U.S. Technology ETF (NYSEArca: IYW) and Vanguard Information Technology ETF (NYSEArca: VGT).