Sector ETFs Surge On Relief Rally In Equity Markets

Sector ETFs surged last week, likely as a part of the hope and relief rally by equity markets

Sector ETFs surged last week, likely with the hope and relief rally experienced by equity markets. Investors seemed absolutely certain that a default would not happen, so there was plenty of “hope” fuel for the fire. The leading sector ETF for the week was the Energy Select Sector SPDR ETF Fund (XLE) which rose 3.14%, and the runner up sector ETF was the Financial Select Sector SPDR Fund ETF (XLF) which rose 2.58%. For now we are likely looking at higher prices ahead, unless of course Congress befuddles markets once more.

Sector ETF Update:
Consumer Discretionary Select Sector SPDR Fund ETF (XLY): +2.06%, This ETF tracks the Consumer Discretionary Select Sector Index which includes media, retail, hotels, leisure, and restaurants.

Sector SPDR Trust SBI Interest ETF (XLK): +2.43%, This ETF tracks the Technology Select Sector of the S&P 500 Index which includes companies in computers, semiconductors, telecommunications, and wireless.

Industrial Select Sector SPDR Fund ETF (XLI): +1.90%, This ETF tracks the Industrial Select Sector Index which consists of aerospace, industrial, rail, airfreight, and construction and engineering.

Materials Select Sector SPDR Fund ETF (XLB): +2.37%, This ETF tracks the Materials Select Sector Index including chemicals, metals and mining, packaging, and construction materials.

Energy Select Sector SPDR Fund ETF (XLE): +3.14%, This ETF tracks the Energy Select Sector Index,including oil and gas, energy equipment, and energy services.

Consumer Staples Select Sector SPDR Fund ETF (XLP): +2.27%, This ETF tracks the Consumer Staples Select Sector Index in sub-sectors including food products, household products, tobacco, and beverages.

Health Care Select Sector SPDR Fund ETF (XLV): +2.58%, This ETF tracks the S&P Health Care Select Sector Index and focuses on pharmaceutical companies, healthcare providers and equipment and biotechnology.

Select Sector Utilities Select Sector SPDR Fund ETF (XLU): +.83%, This ETF tracks the Utilities Select Sector of the S&P 500 Index and includes power companies, energy traders, electric utilities and gas utility companies.

Financial Select Sector SPDR Fund ETF (XLF): +2.95%, This ETF tracks the Financial Select Sector Index which follows commercial banks, insurance consumer finance, mortgage finance, and real estate.

Bottom Line: Sector ETFs rose substantially last week, likely in response to the hope rally experienced by equity markets. If Congress does not befuddle markets anymore, sector EFFs could continue to rise.

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