Each of the nine sector SPDR ETFs have traded higher this
year, some in impressive fashion.
For example, the Consumer Discretionary Select Sector SPDR
) and the Health Care Select Sector SPDR (NYSE:
) are both up more than 28 percent since the start of the
Three Must-Know Industrial ETFs
Those are stellar performances to be sure and there are
well-known benefits to owning sector funds like XLV and XLY.
After all, those ETFs and dozens of others just like them allow
investors to make a low-cost (usually) sector bet without having
to stock pick in hopes of finding a particular sector's top one
or two names.
There are, however, advantages to making more refined
sub-industry bets, as a
broad swath of ETFs have shown this year
. The following industry ETFs have been soaring throughout 2013
and have the potential to build on those gains into the end of
PowerShares Dynamic Media Portfolio (NYSE:
) With CBS (NYSE:
) and Time Warner (NYSE:
) being this ETF's second- and third-largest holdings,
respectively, combing for 10 percent of the fund's weight
there probably should have been an Emmy
bounce for PBS. That did not materialize, but PBS did not need
The fund has surged 38.7 percent this year, a performance that
is more than 1,000 basis points superior to XLY, which is a
relevant comparison because PBS is nearly 62 percent allocated to
discretionary names. PBS is not a pure discretionary/media play.
The ETF has a 35.3 percent weight to the technology sector, a
portion of which lies in Internet names Yahoo (NASDAQ:
), Google (NASDAQ:
) and LinkedIn (NYSE:
have boosted scores of ETFs
this year. Continued bullishness for the Internet space should
help PBS keep up its torrid pace, though the ETF needs to break
resistance at $23.50 to start a new leg higher.
Market Vectors Global Alternative Energy ETF (NYSE:
) Practically any ETF with the alternative energy wrapper has
soared in 2013. Of the top-10 non-leveraged sector ETFs on a
year-to-date basis, at least half offer some type of clean energy
spin and that includes GEX, which is up nearly 59 percent. The
ETF was reverse split at the start of July in what may go down as
one of the most unnecessary reverse splits in ETF history.
Figuring out whether GEX can continue its already impressive
rally boils down to the primary the ETF has rallied in the first
place: Elon Musk's Tesla (NASDAQ:
). No ETF has
a larger weight to Tesla than GEX
With a Tesla allocation of nearly 11 percent, GEX's weight to
that stock is almost 300 basis points higher than the ETF with
the second-largest Tesla weight. With just $88.4 million in
assets under management, GEX is proof positive that . It should
be noted that GEX is getting a bigger as it has raked in over $2
million in assets in just a week.
For more on ETFs, click .
Disclosure: Author does not own any of the securities
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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