U.S. Stocks Near Record High: Top-Ranked ETFs To Buy
Zacks Investment Research | Apr 21, 2019 10:25PM ET
Amid volatile trading in recent weeks, the decade-old U.S. bull is still raging, with the major stock indices near all-time highs. The Dow Jones Industrial Average is just 1% shy of its Oct 3 closing peak while the S&P 500 is within 1% of its all-time closing high. The Nasdaq Composite Index is 1.4% away from the all-time high.
The renewed optimism came from easing recession fears following rounds of upbeat economic data and enthusiasm over trade deal. Additionally, Q1 earnings are coming in better than expected with improving outlook. Earnings from about Value Line Geometric Index . The measure is still about 7.6% below from its all-time high hit on Aug 29, but was up about 23% since its late-December low. This metric also supports the bull thesis.
The encouraging trends have rekindled the appeal for riskier assets, especially the cyclical stocks that tend to outperform during periods of healthy economic growth. Below, we have highlighted five ETFs from the cyclical sectors that have a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy), suggesting their outperformance in the months ahead.
Consumer Discretionary Select Sector SPDR Fund (V:XLY)
This is the largest and the most-popular product in the consumer discretionary space with AUM of $13.3 billion and average daily volume of around 6.4 million shares. It tracks the Consumer Discretionary Select Sector Index and holds 64 securities with higher concentration on the top firm — Amazon (NASDAQ:AMZN) — at 23.9%. Other firms make up for a nice mix with each holding no more than 10.1% of the assets. From a sector look, Internet & direct marketing retail takes the top spot with 29.6% of assets, followed by specialty retail (25.8%), hotels restaurants & leisure (19.8%) and textiles apparel & luxury goods (8.4%). The fund charges 13 bps in fees per year and has a Zacks ETF Rank #2 (read: Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.