May 30, 2012 at 07:00 AM EDT
Which Sector ETFs Are Cheap?
Sector rotation strategies have long been popular with investors–especially those who believe they are able to spot relative opportunities in various corners of the market. Sector rotation strategies have the potential to generate significant alpha, as there are often big differences between performance of various sectors of the economy. Timing movements into strong performers and out of laggards can be a way to generate excess returns relative to a broad-based benchmark. Though many investors assume that all corners of the market generally move in unison, the reality is quite different. So far in 2012, the Consumer Discretionary SPDR (XLY) has added about 12%. The Energy SPDR (XLE) is down about 4%–a significant gap between two ETFs that both offer exposure to large cap U.S. stocks [sign up for the free ETFdb newsletter]. Sector ETF PEGs For investors looking to determine relative opportunities in sectors of the U.S. economy, examining the PEG [...] Click here to read the original article on ETFdb.com. Related Posts: All Better Now? Many ETFs Climb Back Near Pre-Recession Levels Low Cost ETFs: Complete List Of The Cheapest Exchange-Traded Funds AdvisorShares Rolls Out SectorSAM ETF (SSAM) ETFs & Sector Rotation: Large Cap, Small Cap, Or International? Sector ETFs During The Correction: XLE Slides, XLP Holds Ground
Sector rotation strategies have long been popular with investors–especially those who believe they are able to spot relative opportunities in various corners of the market. Sector rotation strategies have the potential to generate significant alpha, as there are often big differences between performance of various sectors of the economy. Timing movements into strong performers and out of laggards can be a way to generate excess returns relative to a broad-based benchmark. Though many investors assume that all corners of the market generally move in unison, the reality is quite different. So far in 2012, the Consumer Discretionary SPDR (XLY) has added about 12%. The Energy SPDR (XLE) is down about 4%–a significant gap between two ETFs that both offer exposure to large cap U.S. stocks [sign up for the free ETFdb newsletter].  Sector ETF PEGs For investors looking to determine relative opportunities in sectors of the U.S. economy, examining the PEG [...]

Click here to read the original article on ETFdb.com.

Related Posts:

Advertisement

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here