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 Win from 2-Year Slow October Inflation Data
Read MoreHide Full Article
The Consumer Price Index (CPI) showed prices rose 0% over last month and 3.2% over the prior year in October, a deceleration from September's 0.4% monthly increase and 3.7% annual gain in prices. Core inflation marked its slowest pace in over two years.
Economists' expectations fell short of the actual data, as they had predicted a 0.1% month-over-month increase and a 3.3% year-over-year increase in prices. Core prices were also anticipated to rise by 0.3% over the prior month and 4.1% over the previous year.
Against this backdrop, below we highlight a few sector ETFs that should gain in the near term.
Sector ETFs to Gain
Real Estate – Kelly Residential & Apartment Real Estate ETF
Weighted shelter makes up 32.77% of CPI, of which 7.8% is rent and 23.68% is private housing, per data from MacroMicro. The shelter index rose 0.3% over the month after gaining 0.6% in September. The index for rent rose 0.5% in October, and the index for owners' equivalent rent increased 0.4% sequentially.
The ETF RESI should thus win. The underlying Strategic Residential & Apartment Real Estate Sector Index is a rules-based index that consists of U.S. and Canada-listed companies engaged in Apartment Buildings, Single-Family Rental Homes, Student Housing or Manufactured Homes. The fund yields 7.44% annually.
The transportation index jumped 0.8% sequentially in October after a rise of 0.7% in September. The index gained 9.2% year over year. SPDR S&P Transportation ETF (XTN - Free Report) has a Zacks Rank #2. Trucking takes about 40% of the fund, followed by Airlines and Air Freight & Logistics.
Medical Care Commodities – iShares U.S. Medical Devices ETF (IHI - Free Report)
The medical care commodities index rose 0.3% sequentially after an uptick of 0.3% in September. The index is, however, down 2% year over year. The Zacks Rank #2 (Buy) fund Health Care Equipment takes about 80% of the fund.
The food away from index increased 0.4% sequentially in October, after rising by the same amount in September. The index has risen 5.4% year over year.
This ETF is active and does not track a benchmark. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Sector ETFs to Win from 2-Year Slow October Inflation Data
The Consumer Price Index (CPI) showed prices rose 0% over last month and 3.2% over the prior year in October, a deceleration from September's 0.4% monthly increase and 3.7% annual gain in prices. Core inflation marked its slowest pace in over two years.
Economists' expectations fell short of the actual data, as they had predicted a 0.1% month-over-month increase and a 3.3% year-over-year increase in prices. Core prices were also anticipated to rise by 0.3% over the prior month and 4.1% over the previous year.
Against this backdrop, below we highlight a few sector ETFs that should gain in the near term.
Sector ETFs to Gain
Real Estate – Kelly Residential & Apartment Real Estate ETF
Weighted shelter makes up 32.77% of CPI, of which 7.8% is rent and 23.68% is private housing, per data from MacroMicro. The shelter index rose 0.3% over the month after gaining 0.6% in September. The index for rent rose 0.5% in October, and the index for owners' equivalent rent increased 0.4% sequentially.
The ETF RESI should thus win. The underlying Strategic Residential & Apartment Real Estate Sector Index is a rules-based index that consists of U.S. and Canada-listed companies engaged in Apartment Buildings, Single-Family Rental Homes, Student Housing or Manufactured Homes. The fund yields 7.44% annually.
Transportation – SPDR S&P Transportation ETF (XTN - Free Report)
The transportation index jumped 0.8% sequentially in October after a rise of 0.7% in September. The index gained 9.2% year over year. SPDR S&P Transportation ETF (XTN - Free Report) has a Zacks Rank #2. Trucking takes about 40% of the fund, followed by Airlines and Air Freight & Logistics.
Medical Care Commodities – iShares U.S. Medical Devices ETF (IHI - Free Report)
The medical care commodities index rose 0.3% sequentially after an uptick of 0.3% in September. The index is, however, down 2% year over year. The Zacks Rank #2 (Buy) fund Health Care Equipment takes about 80% of the fund.
Restaurants – AdvisorShares Restaurant ETF (EATZ - Free Report)
The food away from index increased 0.4% sequentially in October, after rising by the same amount in September. The index has risen 5.4% year over year.
This ETF is active and does not track a benchmark. 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.