A rebound in the broader industrial sector, one of the worst-performing groups in the S&P 500 this year, could help water stocks.
“The industrial sector is in good shape with production rising 3.9% in November from the year-earlier period, according to government data, continuing a recent growth trend. At the same time, capacity utilization is at 78.5%, below the 80% threshold that suggests capital expansion, but the rate should improve if industrial growth continues, said Connors,” according to MarketWatch.
The average market value of PHO’s holdings is $16.41 billion and over 43% of the ETF’s components are classified as growth stocks. Eleven industry groups are represented in the fund at weights ranging from 2.74% to 28.51.
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