ETF investors who want to gain targeted exposure in the markets today should consider traditional and new economy sector-based strategies that could help align portfolios with market events, harness macro trends or position portfolios for the future.
On the upcoming webcast, Sector Outlook: Year-End Investment Opportunities to Consider, Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors, and Robert Forsyth, Head of SPDR Americas Investment Strategy for State Street Global Advisors, will explore the state of sector investing after the recent elections, helping financial advisors understand the market opportunities that may lie ahead.
For example, the SPDR Kensho Intelligent Structures ETF (NYSEArca: XKII), SPDR Kensho Smart Mobility ETF (NYSEArca: XKST) and SPDR Kensho Future Security ETF (NYSEArca: XKFS) may help investors focus on the potential growth opportunity in next-generation technologies.
The Kensho Intelligent Structures ETF follows companies whose products and services are driving innovation behind intelligent infrastructure, such as smart building infrastructure, smart power grids, intelligent transportation infrastructure, and intelligent water infrastructure.
The Kensho Smart Mobility ETF includes companies whose products and services are engaged in smart transportation, which includes the areas of autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems.
The Kensho Future Security ETF tracks companies involved with innovation behind future security, which includes the areas of cyber security and advanced border security, along with military applications like robotics, drones and drone technologies, space technology, wearable technologies and virtual or augmented reality activities.
Additionally, something like the broader SPDR Kensho New Economies Composite ETF (NYSEArca: KOMP), which includes “New Economy” industries, ranging from 3D printing to genetic engineering, can provide investors access to a comprehensive and diversified set of companies propelling the new economy.
As we enter the late stages of the economic cycle, with the economy beginning to slow down and monetary policy constricting faster growth, investors may look to traditional sector plays like the Health Care Select Sector SPDR ETF (NYSEArca: XLV), Consumer Staples Select Sector SPDR ETF (NYSEArca: XLP) and ,Industrial Select Sector SPDR (NYSEArca: XLI). While the economy is still eking out positive but shows signs of slowing down, investors can look to these sector plays in the late economic cycle to remain in the game and benefit from the economic shifts.
Financial advisors who are interested in learning more about the market sectors can register for the Thursday, November 15 webcast here.