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3 Sector ETFs to Win Despite Hot February Inflation Data
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The U.S. consumer price index, a broad measure of goods and services costs, rose 0.4% sequentially in February and 3.2% year over year. The monthly gain was in line with expectations, but the annual rate was slightly ahead of the 3.1% forecast from the Dow Jones consensus.
Barring volatile food and energy prices, the core CPI ticked up 0.4% on the month and was up 3.8% on the year. Both were one-tenth of a percentage point higher than forecast, per CNBC. Against this backdrop, below we highlight a few sector ETFs that may gain in the near term.
Sector ETFs to Gain
Real Estate – Real Estate Select Sector SPDR ETF (XLRE - Free Report)
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 jumped 0.4% in February and was the largest factor in the monthly increase in the index for all items less food and energy. The index for rent rose 0.5% sequentially, while the index for owners’ equivalent rent ticked up 0.4%.
The underlying Real Estate Select Sector Index includes securities of companies from the following industries real estate management and development and REITs, excluding mortgage REITs. The fund yields 3.35% annually and charges 9 bps in fees.
“With home prices expected to rise this year and rents falling only slowly, the long-awaited fall in shelter prices isn’t coming to the rescue any time soon,” said Robert Frick, corporate economist at Navy Federal Credit Union, as quoted on CNBC.
The airline fares index rose 3.6% in February, following a 1.4% uptick in January.
The underlying U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines. The fund charges 60 bps in fees.
The food away from home index rose 0.1% in February, after rising 0.5% in January. The index for full-service meals ticked up 0.1%, as did the index for limited-service meals. The index for food-away-from home increased 4.5% over the last year. The index for limited-service meals rose 5.2% over the last one year, and the index for full-service meals gained 3.8% over the same period.
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.
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3 Sector ETFs to Win Despite Hot February Inflation Data
The U.S. consumer price index, a broad measure of goods and services costs, rose 0.4% sequentially in February and 3.2% year over year. The monthly gain was in line with expectations, but the annual rate was slightly ahead of the 3.1% forecast from the Dow Jones consensus.
Barring volatile food and energy prices, the core CPI ticked up 0.4% on the month and was up 3.8% on the year. Both were one-tenth of a percentage point higher than forecast, per CNBC. Against this backdrop, below we highlight a few sector ETFs that may gain in the near term.
Sector ETFs to Gain
Real Estate – Real Estate Select Sector SPDR ETF (XLRE - Free Report)
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 jumped 0.4% in February and was the largest factor in the monthly increase in the index for all items less food and energy. The index for rent rose 0.5% sequentially, while the index for owners’ equivalent rent ticked up 0.4%.
The underlying Real Estate Select Sector Index includes securities of companies from the following industries real estate management and development and REITs, excluding mortgage REITs. The fund yields 3.35% annually and charges 9 bps in fees.
“With home prices expected to rise this year and rents falling only slowly, the long-awaited fall in shelter prices isn’t coming to the rescue any time soon,” said Robert Frick, corporate economist at Navy Federal Credit Union, as quoted on CNBC.
Airlines – U.S. Global Jets ETF (JETS - Free Report)
The airline fares index rose 3.6% in February, following a 1.4% uptick in January.
The underlying U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines. The fund charges 60 bps in fees.
Restaurants – AdvisorShares Restaurant ETF (EATZ - Free Report)
The food away from home index rose 0.1% in February, after rising 0.5% in January. The index for full-service meals ticked up 0.1%, as did the index for limited-service meals. The index for food-away-from home increased 4.5% over the last year. The index for limited-service meals rose 5.2% over the last one year, and the index for full-service meals gained 3.8% over the same period.
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.