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5 Sector ETFs Still At Cheap Prices Amid Peak Market
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The stock market has been on a historic rally driven by encouraging COVID-19 vaccines trial results from AstraZeneca (AZN - Free Report) , Moderna (MRNA - Free Report) and Pfizer (PFE - Free Report) and the likelihood of the availability of any one of them soon. In fact, the UK has become the first country that started rolling out vaccination program developed by Pfizer.
A vaccine is being viewed as “a beginning to the end” of the pandemic that should lead to a swift recovery in economic growth, leading to higher spending and confidence. Additionally, reports that lawmakers and the White House are progressing toward a fresh stimulus for the coronavirus-stricken economy has also led to a spike in stocks. The White House unveiled a $916 billion stimulus proposal in a final rush to break months of negotiations.
Further, the potential for a divided Congress with President-elect Biden has been fueling growth in the stocks. The divided government is favorable for the economy, as there will be lesser chances of major tax increases and tighter regulations (read: S&P 500 Set to Climb Higher in 2021: Bet on These ETFs).
Though many sectors are hitting new highs amid the peak market, some funds are still down from a year-to-date look and are due to climb in the coming weeks. Additionally, these have a Zacks ETF Rank #3 (Hold), suggesting room for upside if the trend continues.
Let’s take a look at these beaten-down ETFs from different corners of the market:
SPDR S&P Oil & Gas Exploration & Production ETF (XOP - Free Report) – Down 34.8%
This fund provides exposure to oil and gas exploration companies by tracking the S&P Oil & Gas Exploration & Production Select Industry Index. It has amassed $2.1 billion in its asset base and holds 41 securities in its basket. The product charges 35 bps in annual fees and trades in an average volume of 8.1 million shares per day (read: Should You Buy Oil & Gas ETFs Now?).
This fund provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. In total, the product holds 45 securities and charges 60 bps in annual fees. It has gathered $2.9 billion in its asset base while sees heavy trading volume of nearly 5.7 million shares a day.
This fund provides exposure to companies primarily engaged in U.S. banking activities by tracking the KBW Nasdaq Bank Index. With AUM of $1.2 billion, it holds 24 stocks in its basket and trades in solid volume of 971,000 shares per day on average. It charges 35 bps in annual fees.
iShares U.S. Aerospace & Defense ETF (ITA - Free Report) – Down 12.3%
This fund provides investors exposure to U.S. companies that manufacture commercial and military aircraft and other defense equipment by tracking the Dow Jones U.S. Select Aerospace & Defense Index. It holds 35 stocks with AUM of $3 billion and expense ratio of 0.42%. Volume is good at around 187,000 shares (read: 5 ETFs at the Forefront of the Latest Market Rally).
Invesco DWA Utilities Momentum ETF (PUI - Free Report) – Down 5.5%
This fund offers exposure to 37 companies that are showing relative strength (momentum) and tracks the DWA Utilities Technical Leaders Index. The ETF charges 60 bps in annual fees and sees a light volume of around 12,000 shares on average. It has AUM of $56.8 million.
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5 Sector ETFs Still At Cheap Prices Amid Peak Market
The stock market has been on a historic rally driven by encouraging COVID-19 vaccines trial results from AstraZeneca (AZN - Free Report) , Moderna (MRNA - Free Report) and Pfizer (PFE - Free Report) and the likelihood of the availability of any one of them soon. In fact, the UK has become the first country that started rolling out vaccination program developed by Pfizer.
A vaccine is being viewed as “a beginning to the end” of the pandemic that should lead to a swift recovery in economic growth, leading to higher spending and confidence. Additionally, reports that lawmakers and the White House are progressing toward a fresh stimulus for the coronavirus-stricken economy has also led to a spike in stocks. The White House unveiled a $916 billion stimulus proposal in a final rush to break months of negotiations.
Further, the potential for a divided Congress with President-elect Biden has been fueling growth in the stocks. The divided government is favorable for the economy, as there will be lesser chances of major tax increases and tighter regulations (read: S&P 500 Set to Climb Higher in 2021: Bet on These ETFs).
Though many sectors are hitting new highs amid the peak market, some funds are still down from a year-to-date look and are due to climb in the coming weeks. Additionally, these have a Zacks ETF Rank #3 (Hold), suggesting room for upside if the trend continues.
Let’s take a look at these beaten-down ETFs from different corners of the market:
SPDR S&P Oil & Gas Exploration & Production ETF (XOP - Free Report) – Down 34.8%
This fund provides exposure to oil and gas exploration companies by tracking the S&P Oil & Gas Exploration & Production Select Industry Index. It has amassed $2.1 billion in its asset base and holds 41 securities in its basket. The product charges 35 bps in annual fees and trades in an average volume of 8.1 million shares per day (read: Should You Buy Oil & Gas ETFs Now?).
U.S. Global Jets ETF (JETS - Free Report) – Down 26.4%
This fund provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. In total, the product holds 45 securities and charges 60 bps in annual fees. It has gathered $2.9 billion in its asset base while sees heavy trading volume of nearly 5.7 million shares a day.
Invesco KBW Bank ETF (KBWB - Free Report) – Down 13.4%
This fund provides exposure to companies primarily engaged in U.S. banking activities by tracking the KBW Nasdaq Bank Index. With AUM of $1.2 billion, it holds 24 stocks in its basket and trades in solid volume of 971,000 shares per day on average. It charges 35 bps in annual fees.
iShares U.S. Aerospace & Defense ETF (ITA - Free Report) – Down 12.3%
This fund provides investors exposure to U.S. companies that manufacture commercial and military aircraft and other defense equipment by tracking the Dow Jones U.S. Select Aerospace & Defense Index. It holds 35 stocks with AUM of $3 billion and expense ratio of 0.42%. Volume is good at around 187,000 shares (read: 5 ETFs at the Forefront of the Latest Market Rally).
Invesco DWA Utilities Momentum ETF (PUI - Free Report) – Down 5.5%
This fund offers exposure to 37 companies that are showing relative strength (momentum) and tracks the DWA Utilities Technical Leaders Index. The ETF charges 60 bps in annual fees and sees a light volume of around 12,000 shares on average. It has AUM of $56.8 million.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>