After months of dominance by the tech sector, the trend seems to be reversing with cyclical sectors taking charge this month. This is especially true as the latest rounds of data signals that the economy is stabilizing amid the lingering coronavirus crisis, providing enough impetus to economic-sensitive sectors.

This is especially true as retail sales bounced back to their pre-pandemic level in just a few months after slumping to a seven-year low in April. In July, the unemployment rate dropped to 10.2%, below June's 11.1% mark while U.S. manufacturing activity expanded at the fastest pace in 15 months. Meanwhile, confidence among homebuilders soared to the highest level ever in August buoyed by record-low interest rates, which spurred buying.

Investors should note that the cyclical sectors are tied to economic activities and when growth improves, these perform well. Additionally, the stocks in these sectors are attractively valued at the current levels as they were beaten down badly by the coronavirus-led market sell-off. Further, trillions of dollars injected into the economy and hopes of a potential coronavirus vaccine will continue to fuel the rally.

That said, we have presented five ETFs that scaled new highs in the latest trading session and belong to cyclical sectors. The solid trend is likely to continue if the current fundamentals prevail.

Invesco DWA Industrials Momentum ETF (PRN - Free Report) – 52-Week High Price: $76.63

This fund provides exposure to 41 companies by tracking the Dorsey Wright Industrials Technical Leaders Index. It is well balanced across each security with none accounting for more than 4.1% share in the basket. In terms of industrial exposure, aerospace and defense, electrical equipment, IT services, machinery, and building products make up the top five. The fund has amassed $64.4 million in its asset base and charges 60 basis points in annual fees. It trades in average daily volume of 4,000 shares and has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook

Invesco S&P SmallCap Consumer Discretionary ETF (PSCD - Free Report) – 52-Week High Price: $65.93

The fund follows the S&P SmallCap 600 Capped Consumer Discretionary Index and holds 96 securities in its basket with none accounting for more than 5.1% of the assets. Specialty retail takes the largest share at 24% while leisure products, hotels & entertainment services, automobiles & auto parts, and homebuilding & construction supplies accounts for double-digit exposure each. The product has attracted $19.5 million in AUM while seeing a paltry volume of 9,000 shares per day. The ETF charges 29 bps in annual fees and has a Zacks ETF Rank #4 with a High risk outlook.

Materials Select Sector SPDR (XLB - Free Report) - 52-Week High Price: $63.36

This is the most popular material ETF that follows the Materials Select Sector Index. It manages about $3.3 billion in its asset base and trades in volumes as heavy as around 6.2 million shares. In total, the fund holds about 28 securities in its basket with heavy concentration on the top firm and charges 13 bps in fees per year from investors. In terms of industrial exposure, chemicals dominates the portfolio with 70.3% share while containers & packaging, and metals & mining round off the top three positions. The product has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.

iShares U.S. Home Construction ETF (ITB - Free Report) - 52-Week High Price: $55.88

This fund provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. With AUM of $2.1 billion, it holds a basket of 44 stocks with heavy concentration on the top two firms. Homebuilding and building products account for 65.4% and 14.6% share, respectively. The product charges 42 bps in annual fees and trades in heavy volume of around 3.4 million shares a day on average. It carries a Zack ETF Rank #3 with a High risk outlook.

SPDR S&P Retail ETF (XRT - Free Report) - 52-Week High Price: $52.79

With AUM of $422.5 million, this product tracks the S&P Retail Select Industry Index, holding 82 securities in its basket. Internet & direct marketing retail takes the largest share at 25.8% while automotive retail, apparel retail, and specialty stores round off the next three spots with a double-digit allocation each. The fund charges 35 bps in annual fees and trades in average daily volume of around 4.1 million shares. It has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.