Additionally, BlackRock also favors more specific market plays in the current environment, namely technology, financials and the momentum style factor.
ETF investors interested in gaining targeted exposure to these areas have a number options available, such as the iShares U.S. Financials ETF (NYSEArca: IYF) and iShares U.S. Technology ETF (NYSEArca: IYW).
The iShares U.S. Financials ETF tries to reflect the performance of the benchmark Dow Jones U.S. Financials Index, which is comprised of U.S. banks, insurers and credit card companies, including many known Wall Street names and other financial institutes
The iShares U.S. Technology ETF tries to reflect the performance of the Dow Jones U.S. Technology Index, which is comprised of U.S. electronics, computer software and hardware, and informational technology companies.
Additionally, the iShares MSCI USA Momentum Factor ETF (NYSEArca: MTUM) tracks large- and mid-cap U.S. stocks with relatively high price momentum. The underlying MSCI USA Momentum Index calculates the ratio of each stock’s price returns over the trailing 13 and seven months against volatility over the past three years. Companies are then weighted by their risk-adjusted momentum.
For more information on the markets, visit our current affairs category.