A Solid Start for Sector Rotation ETF

Those three ETFs combine for 48% of SECT’s roster. Rising interest rates are seen helping U.S. banks and the related ETFs. The Federal Reserve has boosted borrowing costs twice this year and bond market observers widely expect a third rate hike when the Fed meets in December. The financial services sector could be working its way into a period of long-term out-performance. The recent rally in the sector could still be in the early innings, according to some market observers.

In 2017, XLK and XLV were among the best-performing cap-weighted sector ETFs.

ETFs that are selected in its fund-of-funds methodology will be based on various factors in the respective ETFs, including underlying index and portfolio holdings, sector exposure and weightings, liquidity profiles and tracking error.

Seven of SECT’s holdings are SPDR ETFs while the remaining ETFs are iShares products.

For more information on new fund products, visit our new ETFs category.