Late Cycle ETF Ideas

“Also, crude oil prices are 60% higher since last June, buoyed by Organization of the Petroleum Exporting Countries (OPEC) and Russian production cuts over the past few years removing the supply glut, the looming Iran sanctions and plummeting Venezuelan oil production,” said SSgA in a recent note. “Companies in the energy and materials sectors that are most sensitive to commodity prices may benefit from the cyclical upturn in producer prices.”

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The $717.04 million NANR allocates over 48% of its weight to the energy sector. Materials names represent just over 46% of the fund’s weight.

“In this shifting environment, consider carving out a portion of equity allocations for exposures which are more sensitive to producer price inflation and higher input prices,” advises SSgA.

For more information on the materials sector, visit our materials category.