Wall Street has been impressing investors with a solid rally in February. The Dow Jones Industrials Average has climbed more than 5% in the month. Going on, the other two broader indices, the S&P 500 and the Nasdaq Composite, gained more than 5% and 6% respectively, in the same period.
Spreading optimism regarding the $1.9-trillion stimulus proposal, Treasury Secretary Janet Yellen has emphasized that bigger and timely help is necessary. It will help bring back full-employment in a year in the United States and also add to the growth momentum of the U.S. economy, per a CNBC article. In this regard, in a CNBC interview, she said that “we think it’s very important to have a big package [that] addresses the pain this has caused – 15 million Americans behind on their rent, 24 million adults and 12 million children who don’t have enough to eat, small businesses failing.”
According to Speaker Nancy Pelosi, the House of Representatives, is planning to get the $1.9-trillion coronavirus stimulus plan approved before the end of February, per a CNBC article. Going by the same article, the Democratic Congressional leaders may attempt to get the package approved without taking votes from Republicans.
It is also believed that wider coronavirus vaccine rollouts are making a strong case in favor of faster U.S. economic recovery in 2021. Following a strong winter storm that disturbed the logistics, the White House issued a statement that it projects to dispatch millions of delayed coronavirus vaccine deliveries this week, per the sources.
Biden is expected to increase the distribution of coronavirus vaccines by rolling out more funds to the local and state officials, increasing the number of vaccination sites and introducing a national education campaign, per a CNBC article. Moreover, positive developments with regard to discussions on providing an additional stimulus are raising hopes of faster U.S. economic recovery.
Also, Federal Reserve Chairman Jerome Powell recently said that a “patiently accommodative” monetary policy is needed to cushion the economy after observing the sluggish labor market conditions, per a CNBC article.
However, concerns over rising U.S. treasury yields and possibilities for inflation is keeping investors on edge of late. The yield on the benchmark 10-year Treasury note climbed to a one-year high of 1.36% last week and ended the week on 1.34%, according to a Reuters article.
ETFs Worth Your Attention
Against this bullish backdrop, let’s take a look at some ETFs that can help you ride the market bulls:
Fidelity MSCI Materials Index ETF FMAT
The fund seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI (LON:IMI) Materials Index. It has AUM of $318.7 million. It charges investors 8 basis points (bps) in annual fees as stated in the prospectus. The fund has a Zacks ETF Rank #2 (Buy) currently, with a Medium-risk outlook (read: What's in Store for Material ETFs in Q4 Earnings?).
The Consumer Discretionary Select Sector SPDR Fund XLY
The fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Consumer Discretionary Select Sector Index. It has AUM of $19.78 billion. It charges investors 12 bps in annual fees as stated in the prospectus. The fund has a Zacks ETF Rank #2 currently, with a Medium-risk outlook (read: 5 ETFs to Buy on Amazon (NASDAQ:AMZN)'s Blockbuster Q4 Earnings).
Vanguard S&P Small-Cap 600 ETF VIOO
The fund seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the S&P Small-Cap 600 Index. It has AUM of $1.43 billion. It charges investors 10 bps in annual fees as stated in the prospectus. The fund has a Zacks ETF Rank #2 currently, with a Medium-risk outlook.
SPDR Portfolio S&P 500 Growth ETF SPYG
The fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P 500 Growth Index. It charges an expense ratio of 0.04% and has an AUM of $10.01 billion. SPYG carries a Zacks ETF Rank #1 (Strong Buy) with a Medium-risk outlook (read: 5 ETFs That Deserve a Place in Your Portfolio).
iShares MSCI USA Momentum Factor ETF MTUM
This fund provides exposure to large and mid-cap stocks that exhibit relatively higher price momentum by tracking the MSCI USA Momentum SR Variant Index. It charges 15 bps in fees per year and is a popular choice, with AUM of $16.15 billion (read: Buy High-Beta & Momentum ETFs to Follow J.P. Morgan's Vision).
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Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
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