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The Zacks Analyst Blog Highlights SPDR S&P Transportation ETF, AdvisorShares Restaurant ETF, Vanguard Real Estate ETF and SPDR S&P Oil & Gas Exploration & Production ETF
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For Immediate Release
Chicago, IL – November 11, 2022 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: SPDR S&P Transportation ETF (XTN - Free Report) , AdvisorShares Restaurant ETF (EATZ - Free Report) , Vanguard Real Estate ETF (VNQ - Free Report) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Sector ETFs to Win on October Inflation Data
The annual inflation rate in the United States decelerated for the fourth consecutive month to 7.7% in October, the lowest since January, and below forecasts of 8%. It compares with 8.2% in September. Compared to the previous month, the CPI rose 0.4%, below expectations of 0.6%.
Shelter made up more than half of the increase (0.8%). At the same time, cost of medical care services (-0.6%) and commodities (0%) contributed negatively to the CPI. Still, figures hint at the strong inflationary pressures and a broad price increase across the economy, mainly in the services sector.
Against this backdrop, we suggest a few sector ETFs that can be worth investing at the time of rising inflation. Below we highlight those.
Transportation
The transportation index jumped 0.8% sequentially in October after an uptick of 1.9% in September. The index gained 15.2% year over year.
SPDR S&P Transportation ETF has a Zacks Rank #3. Trucking takes about 39.8% of the fund, followed by Airlines (25.81%), Air Freight & Logistics (18.61%).
Restaurants
The food away from home index rose 0.9% sequentially in October after rising by the same percentage in September. This points to the fact that restaurants are charging higher to compensate for the increased food costs.
AdvisorShares Restaurant ETF – The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business.
Real Estate
Weighted shelter makes up 32.77% of CPI, of which 7.8% is rent and 23.68% is private housing, per data from MacroMicro. Shelter costs rose 0.9% in October, same as September. Year over year, prices are up 6.9%. Rising home prices also boosted the demand for real estate.
Zacks Rank #3 Vanguard Real Estate ETF should thus win. The underlying MSCI US Investable Market Real Estate 25/50 Index is made up of stocks of large, mid-size, and small U.S. companies within the real estate sector. The fund yields 3.84% annually.
Energy
The energy sector tends to perform well in an inflationary environment. Revenues of energy stocks are dependent on energy prices, a key factor of inflation indices. The operating backdrop of the sector, too, is bullish. Oil prices have been rising since the beginning of 2022.
The energy index rose 1.8% sequentially in October after a decline of 2.1% in September. Fuel oil marked a considerable gain in the month. The upside in crude oil prices was triggered by factors like easing COVID-19 concerns, supply shortages, and geopolitical tensions in energy-rich Eastern Europe and the Middle East.
Zacks Rank #2 SPDR S&P Oil & Gas Exploration & Production ETF could be a good play here.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights SPDR S&P Transportation ETF, AdvisorShares Restaurant ETF, Vanguard Real Estate ETF and SPDR S&P Oil & Gas Exploration & Production ETF
For Immediate Release
Chicago, IL – November 11, 2022 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: SPDR S&P Transportation ETF (XTN - Free Report) , AdvisorShares Restaurant ETF (EATZ - Free Report) , Vanguard Real Estate ETF (VNQ - Free Report) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
4 Sector ETFs to Win on October Inflation Data
The annual inflation rate in the United States decelerated for the fourth consecutive month to 7.7% in October, the lowest since January, and below forecasts of 8%. It compares with 8.2% in September. Compared to the previous month, the CPI rose 0.4%, below expectations of 0.6%.
Shelter made up more than half of the increase (0.8%). At the same time, cost of medical care services (-0.6%) and commodities (0%) contributed negatively to the CPI. Still, figures hint at the strong inflationary pressures and a broad price increase across the economy, mainly in the services sector.
Against this backdrop, we suggest a few sector ETFs that can be worth investing at the time of rising inflation. Below we highlight those.
Transportation
The transportation index jumped 0.8% sequentially in October after an uptick of 1.9% in September. The index gained 15.2% year over year.
SPDR S&P Transportation ETF has a Zacks Rank #3. Trucking takes about 39.8% of the fund, followed by Airlines (25.81%), Air Freight & Logistics (18.61%).
Restaurants
The food away from home index rose 0.9% sequentially in October after rising by the same percentage in September. This points to the fact that restaurants are charging higher to compensate for the increased food costs.
AdvisorShares Restaurant ETF – The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business.
Real Estate
Weighted shelter makes up 32.77% of CPI, of which 7.8% is rent and 23.68% is private housing, per data from MacroMicro. Shelter costs rose 0.9% in October, same as September. Year over year, prices are up 6.9%. Rising home prices also boosted the demand for real estate.
Zacks Rank #3 Vanguard Real Estate ETF should thus win. The underlying MSCI US Investable Market Real Estate 25/50 Index is made up of stocks of large, mid-size, and small U.S. companies within the real estate sector. The fund yields 3.84% annually.
Energy
The energy sector tends to perform well in an inflationary environment. Revenues of energy stocks are dependent on energy prices, a key factor of inflation indices. The operating backdrop of the sector, too, is bullish. Oil prices have been rising since the beginning of 2022.
The energy index rose 1.8% sequentially in October after a decline of 2.1% in September. Fuel oil marked a considerable gain in the month. The upside in crude oil prices was triggered by factors like easing COVID-19 concerns, supply shortages, and geopolitical tensions in energy-rich Eastern Europe and the Middle East.
Zacks Rank #2 SPDR S&P Oil & Gas Exploration & Production ETF could be a good play here.
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.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.