U.S. stocks have been retracing the path back to their all-time highs this months, exploding higher on Tuesday after President Donald Trump said he will be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit, and broadening anticipation for a U.S.-China trade deal. Traders and economist have been increasingly sanguine since earlier this month, when Federal Reserve Chairman Powell signaled the Fed would come to the market’s aid if necessary.
With the Fed intimating the desire to rescue the market, a trade deal potentially in the works, and global tensions easing somewhat, here are some sectors and associated ETFs for investors to take to examine more closely, according to investment research firm Zacks:
Aerospace giant Boeing received some great news for its problematic 737 Max on Tuesday, when International Airlines Group broadcast plans to buy 200 of the jets. The group announced a letter of intent on the purchase of the jets at the Paris Air Show. Boeing is up more than 4% Tuesday. Investors looking for a concentrated stake in Boeing, can investigate the iShares U.S. Aerospace & Defense ETF (ITA) which has an 18% weighting in the company. The SPDR Dow Jones Industrial Average ETF (DIA) has a more balanced blend of equities, while still boasting a 9% stake in Boeing. Finally, the Invesco Aerospace & Defense ETF (PPA) offers investors a 6% stake in the aerospace company.
Medical Sector ETFs
The medical sector has 85% of the industries up says Zachs, and HMO’s and nursing homes are leading the way. Investors looking at ETFs that would offer them exposure to the industry could consider the Fidelity MSCI Health Care ETF (FHLC), the Vanguard Health Care ETF (VHT), or the Invesco S&P 500® Equal Wt Hlth Care ETF (RYH).
Concrete and aggregates are driving up the home construction sector with 70% of the industries the construction sector up. Investors looking to play the sector can scrutinize the SPDR S&P Homebuilders ETF (NYSEArca: XHB), or the iShares U.S. Home Construction ETF (NYSEArca: ITB).
According to Zachs, 52% of their energy industries are up with exploration, production, and integrated leading the charge. Among the best performing non-leveraged ETFs as of last Thursday, the SPDR Oil & Gas Equipment & Services ETF (NYSEArca: XES) increased 3.5% last week, while Invesco Dyanmic Oil & Gas Services Portfolio (NYSEArca: PXJ) jumped 3.7% and VanEck Vectors Oil Service ETF (NYSEArca: OIH) advanced 3.2%.
For more investing ideas, visit our Tactical Allocation Channel.