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5 Sector ETFs to Win After Robust November Jobs Data

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In November, U.S. employers added 266,000 new jobs, after an upwardly revised 156,000 gains in October. The latest number beat market expectations of 180,000. It was the highest gains in payrolls since January.

In November, average hourly earnings increased by 7 cents to $28.29. In a year, average hourly earnings grew 3.1%. Average hourly earnings of private-sector production and nonsupervisory employees rose 7 cents to $23.83 in November.

Health Care

Per trading economics, health care added 45,000 jobs in the month, on top of October’s 12,000 gains. Per tradingeconomics, health care employment increased by 414,000 in a year’s time. This is one of the sectors which have been adding jobs continuously. The November job gains occurred in ambulatory health care services (+34,000) and in hospitals (+10,000).

The fund iShares U.S. Healthcare Providers ETF IHF should thus benefit. The index of the fund looks to track stocks of health maintenance organizations, hospitals, clinics, dentists, opticians, nursing homes, etc. The Zacks Rank #3 (Hold) stock added about 0.9% on Dec 6.

Leisure & Hospitality

About 45,000 jobs were created in the sector in the month. The industry has added 219,000 jobs over the last four months.

Obviously, such positive data makes us keep a close watch on Invesco Dynamic Leisure And Entertainment ETF PEJ. The underlying Dynamic Leisure & Entertainment Intellidex Index comprises stocks of U.S. leisure and entertainment companies. The index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. The fund has a Zacks ETF Rank #3 (read: ETFs in Focus on Starbucks' Solid Q4 Earnings Report).

Financial Activities

In November, employment in financial activities grew 13,000, with notable gains in credit intermediation and related activities (+7,000). Financial activities added 116,000 jobs over the last 12 months.

Financial Select Sector SPDR Fund XLF has a Zacks Rank #2 (Buy). The underlying Financial Select Sector Index seeks to provide an effective representation of the financial sector of the S&P 500 Index.


Manufacturing employment increased 54,000 in November, following a decline of 43,000 in October. The reading was hit by a 40-day General Motors (GM) strike, which sent 46,000 autoworkers out of the workforce. Within manufacturing, employment in motor vehicles and parts was up by 41,000 in November, reflecting the return of workers.

First Trust NASDAQ Global Auto Index Fund (CARZ - Free Report) follows the NASDAQ OMX Global Auto Index, which is designed to track the performance of the largest and most-liquid companies engaged in manufacturing of automobiles. The Zacks Rank #3 fund charges 70 bps in fees.


Employment in transportation and warehousing maintained its uptrend in November (+16,000). Within the industry, job gains occurred in warehousing and storage (+8,000) and in couriers and messengers (+5,000). In this context, iShares Transportation Average ETF IYT hogs attention.

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