We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Sector ETFs to Bet Big On Despite Subdued Manufacturing Data
Read MoreHide Full Article
On Apr 1, 2022, the Institute of Supply Management (ISM) reported that its manufacturing index for March decline to 57.1% from 58.6% in February, well below market forecasts of 59%. This marked the slowest growth in factory activity since September of 2020.
A slowdown was seen in new orders (53.8 vs 61.7), production (54.5 vs 58.5) and backlog of orders (60 vs 65) and price pressures intensified (87.1 vs 75.6) due to instability in global energy markets, per tradingeconomics.
Fifteen manufacturing industries witnessed growth in March. Against this backdrop, below we highlight a few sectors that emerged winners last month.
Both Chemical Products and Fabricated Metal Products reported growth in March. The chemical industry takes about considerable portion of the fund IYM. The industry survey confirms that demand has been robust. Prices are rising for steel and steel products after a slight decrease from highs last month. IYM is up 38.3% past month.
Per the survey conducted by ISM, demand continues to be strong for the Electrical Equipment, Appliances & Components segment, though backlog is still increasing. Demand is strong from the Computer & Electronic Products segment too. “No letup yet in supply chain challenges, especially electronic components,” hinted the ISM survey. Companies are depending on the broker market more and more. SMH is up 1.1% past month.
Demand for food and beverage should remain in the sweet spot in the coming days as these are necessary items and less ruffled by economic weakness. However, “the Russian invasion of Ukraine has created uncertainty in the grain markets, causing upward pricing pressure. In addition, inflationary pressures across all categories have made it challenging to manage cost and profitability,” revealed the ISM survey. PBJ has been up 2.8% in the past month.
The survey of the Primary Metals segment has indicated that the supply chain is still unstable. But the high demand for metal has kept the space charged-up. XME has been up 2.8% in the past month.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Sector ETFs to Bet Big On Despite Subdued Manufacturing Data
On Apr 1, 2022, the Institute of Supply Management (ISM) reported that its manufacturing index for March decline to 57.1% from 58.6% in February, well below market forecasts of 59%. This marked the slowest growth in factory activity since September of 2020.
A slowdown was seen in new orders (53.8 vs 61.7), production (54.5 vs 58.5) and backlog of orders (60 vs 65) and price pressures intensified (87.1 vs 75.6) due to instability in global energy markets, per tradingeconomics.
Fifteen manufacturing industries witnessed growth in March. Against this backdrop, below we highlight a few sectors that emerged winners last month.
Materials — iShares U.S. Basic Materials ETF (IYM - Free Report)
Both Chemical Products and Fabricated Metal Products reported growth in March. The chemical industry takes about considerable portion of the fund IYM. The industry survey confirms that demand has been robust. Prices are rising for steel and steel products after a slight decrease from highs last month. IYM is up 38.3% past month.
Semiconductors — VanEck Semiconductor ETF (SMH - Free Report)
Per the survey conducted by ISM, demand continues to be strong for the Electrical Equipment, Appliances & Components segment, though backlog is still increasing. Demand is strong from the Computer & Electronic Products segment too. “No letup yet in supply chain challenges, especially electronic components,” hinted the ISM survey. Companies are depending on the broker market more and more. SMH is up 1.1% past month.
Food & Beverage — Invesco Dynamic Food & Beverage ETF (PBJ - Free Report)
Demand for food and beverage should remain in the sweet spot in the coming days as these are necessary items and less ruffled by economic weakness. However, “the Russian invasion of Ukraine has created uncertainty in the grain markets, causing upward pricing pressure. In addition, inflationary pressures across all categories have made it challenging to manage cost and profitability,” revealed the ISM survey. PBJ has been up 2.8% in the past month.
Metals — SPDR S&P Metals and Mining ETF (XME - Free Report)
The survey of the Primary Metals segment has indicated that the supply chain is still unstable. But the high demand for metal has kept the space charged-up. XME has been up 2.8% in the past month.