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5 Hot Sector ETFs & Stocks to Play for Summer Season
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As the temperature rises and the daylight stretches, so too does the potential for savvy investors to capitalize on the change in season. Certain sectors are set to heat up as we head into the U.S. summer season. Below, we explore the top sectors investors should consider for a sunny summer portfolio.
Travel & Leisure
With the ebbing pandemic and easing travel restrictions, the Travel & Leisure industry is poised for a strong recovery this summer. Airlines, hotels, cruise lines, and travel booking sites are set to benefit from a surge in pent-up demand for travel. As more and more people feel comfortable venturing out, this sector could see significant growth.
Defiance Hotel Airline and Cruise ETF (CRUZ - Free Report) has gained decently past month. Hotelier Marriott International (MAR - Free Report) is a good pick, as far as the stock-picking is concerned.
Retail
Summer is a time for spending, and nowhere is this more apparent than in the Retail sector. Clothing retailers, in particular, tend to thrive as consumers update their wardrobes for the new season. Additionally, home improvement stores often see a boost from summer DIY projects. With the added factor of economic recovery, this summer could be particularly robust for retail.
While SPDR S&P Retail ETF (XRT - Free Report) is rich with apparel stocks, iShares U.S. Consumer Focused ETF (IEDI - Free Report) is heavy home-improvement stocks. As far as stocks are concerned, Investors can bet on Urban Outfitters (URBN - Free Report) and Home Depot (HD - Free Report) are lucrative bets.
Food & Beverage
Picnics, barbecues, and beach trips – summer is full of occasions that call for food and drink. This can translate to an uptick in sales for Food & Beverage companies, especially those in the beer and soft drink industries. Also, keep an eye on companies that cater to healthier options, as the warmer weather often inspires a focus on fitness and well-being. AdvisorShares Restaurant ETF (EATZ - Free Report) and the fast-food behemoth McDonald's (MCD - Free Report) can be played here.
Energy
Air conditioners, fans, and refrigerators all work overtime in the summer, leading to an increase in energy consumption. Therefore, utility companies, especially those in the electricity sector, often experience a seasonal surge in demand during the hotter months. Investing in this sector could be a smart move to capitalize on this predictable pattern.
NextEra Energy (NEE - Free Report) is a public utility holding company engaged in the generation, transmission, distribution, and sale of electric energy. The stock has about 20% exposure to Virtus Reaves Utilities ETF (UTES - Free Report) .
Technology
Lastly, the Technology sector is always a good bet, irrespective of the season. However, summer often sees an uptick in sales of gadgets and devices, as consumers look to enhance their summer experiences. Think wearable tech for fitness or high-quality cameras for capturing summer memories.
What can be a better option than Apple (AAPL - Free Report) when it comes to tech gadgets. Vanguard Information Technology ETF (VGT - Free Report) invests about more than 20% of its shares in Apple.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
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5 Hot Sector ETFs & Stocks to Play for Summer Season
As the temperature rises and the daylight stretches, so too does the potential for savvy investors to capitalize on the change in season. Certain sectors are set to heat up as we head into the U.S. summer season. Below, we explore the top sectors investors should consider for a sunny summer portfolio.
Travel & Leisure
With the ebbing pandemic and easing travel restrictions, the Travel & Leisure industry is poised for a strong recovery this summer. Airlines, hotels, cruise lines, and travel booking sites are set to benefit from a surge in pent-up demand for travel. As more and more people feel comfortable venturing out, this sector could see significant growth.
Defiance Hotel Airline and Cruise ETF (CRUZ - Free Report) has gained decently past month. Hotelier Marriott International (MAR - Free Report) is a good pick, as far as the stock-picking is concerned.
Retail
Summer is a time for spending, and nowhere is this more apparent than in the Retail sector. Clothing retailers, in particular, tend to thrive as consumers update their wardrobes for the new season. Additionally, home improvement stores often see a boost from summer DIY projects. With the added factor of economic recovery, this summer could be particularly robust for retail.
While SPDR S&P Retail ETF (XRT - Free Report) is rich with apparel stocks, iShares U.S. Consumer Focused ETF (IEDI - Free Report) is heavy home-improvement stocks. As far as stocks are concerned, Investors can bet on Urban Outfitters (URBN - Free Report) and Home Depot (HD - Free Report) are lucrative bets.
Food & Beverage
Picnics, barbecues, and beach trips – summer is full of occasions that call for food and drink. This can translate to an uptick in sales for Food & Beverage companies, especially those in the beer and soft drink industries. Also, keep an eye on companies that cater to healthier options, as the warmer weather often inspires a focus on fitness and well-being. AdvisorShares Restaurant ETF (EATZ - Free Report) and the fast-food behemoth McDonald's (MCD - Free Report) can be played here.
Energy
Air conditioners, fans, and refrigerators all work overtime in the summer, leading to an increase in energy consumption. Therefore, utility companies, especially those in the electricity sector, often experience a seasonal surge in demand during the hotter months. Investing in this sector could be a smart move to capitalize on this predictable pattern.
NextEra Energy (NEE - Free Report) is a public utility holding company engaged in the generation, transmission, distribution, and sale of electric energy. The stock has about 20% exposure to Virtus Reaves Utilities ETF (UTES - Free Report) .
Technology
Lastly, the Technology sector is always a good bet, irrespective of the season. However, summer often sees an uptick in sales of gadgets and devices, as consumers look to enhance their summer experiences. Think wearable tech for fitness or high-quality cameras for capturing summer memories.
What can be a better option than Apple (AAPL - Free Report) when it comes to tech gadgets. Vanguard Information Technology ETF (VGT - Free Report) invests about more than 20% of its shares in Apple.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)