The market sell-off has dragged on growth stocks. With the Nasdaq recovering, some sector exchange traded funds may surprise investors.
While a rebound in growth stocks may cause investors to turn back to the PowerShares QQQ (NasdaqGM: QQQ), which tracks the tech heavy Nasdaq-100, the technology sector may not be the best area to look to.
According to Kensho’s data on best historical trades, materials has been the best performing S&P 500 sector when the Nasdaq 100 rallied, reports Deirdre Bosa for CNBC.
Kensho found that over 17 times since 2006 when the Nasdaq 100 jumped 10% or more in one month, the materials sector returned an average 11.1%, followed by consumer discretionary 10.1%, industrials 10.0% and information technology 9.6%.
ETF investors who are interested in following the materials sector can take a look at the Materials Select Sector SPDR (NYSEArca: XLB), Vanguard Materials ETF (NYSEArca: VAW) and iShares U.S. Basic Materials ETF (NYSEArca: IYM).
For consumer discretionary exposure, investors can follow the iShares US Consumer Services ETF (NYSEArca: IYC), Vanguard Consumer Discretionary ETF (NYSEArca: VCR) and Consumer Discretionary Select Sector SPDR (NYSEArca: XLY).