The S&P 500 is near a 4-year high and the month of August has been good for stocks in general. The SPDR S&P 500 ETF ($SPY) is up 2.3%.
The chart below shows the performance of 6 sector ETFs along with SPY. It is interested to see that the sectors outperforming are those that are perceived as "riskier" and the more "stable" sectors such as the Utilities ($XLU) are lagging.
The best performer is Technology ($XLK) up 5.3% as the Utilities are down 2.6%; an 8% difference in just over two weeks is significant and it shows how money can quickly rotate from one sector to another. If the SPY breaks out it will be good for the riskier sectors such as Technology, Financials ($XLF), Consumer Discretionary ($XLY), and Materials ($XLB). The Utilities and Health Care ($XLV) will likely lag behind.
To view the chart please click on the link below.
Comparison Chart
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
1 comment:
Thanks for this post. The issue of top ETF in this field can create quite some chaos within corporate boardrooms. I wonder when it will all get worked out.
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