U.S. Sector ETFs for a Rising Rate Environment

Furthermore, the technology sector has shown to be less impacted by yield curve shifts. The sector is also known for disruptive innovations and transformative nature, which can lead to long-term potential and produce lasting investment opportunities for both growth and income seekers.

ETF investors interested in gaining targeted exposure to these two 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 like Berkshire Hathaway 7.4%, JPMorgan Chase 7.3%, Bank of America 5.6%, Wells Fargo and Visa 4.2%.

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. The fund includes tech giants like Apple 16.4%, Microsoft 13.5%, Facebook 7.2%, Alphabet’s Google 11.9% and Intel 4.6%.

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