5 Sector ETFs That Beat The Market In The First Half

Invesco DWA Technology Momentum ETF (PTF - Free Report) — Up 37.6%

The technology sector has been the biggest beneficiary of the broad market rally, attributable to the anticipation of a trade deal and the Fed’s more dovish-than-expected view. In fact, PTF, which provides exposure to the companies with relative strength (momentum), has been leading the pack. It follows the Dorsey Wright Technology Technical Leaders Index and holds 39 securities in its basket. This ETF is illiquid and relatively unpopular with AUM of $198.6 million and an average daily volume of 23,000 shares. It charges 60 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

Invesco Aerospace & Defense ETF (PPA - Free Report) — Up 30.6%

Aerospace & defense sector stocks have been rising on better-than-expected solid earnings, a host of mergers and acquisitions as well as new contracts. PPA offers exposure to 47 companies involved in the development, manufacturing, operations as well as support U.S. defense, homeland security and aerospace operations. It tracks the SPADE Defense Index, charging 60 bps in annual fees from investors. The fund has so far managed assets of $1 billion while trading in lower average daily volume of about 67,000 shares. It has a Zacks ETF Rank of 2 with a Medium risk outlook.

Invesco DWA Financial Momentum ETF (PFI - Free Report) — Up 29.9%

Financials sector got a boost from the Fed’s patient approach so far this year and the prospect of cutting interest rates. Though the lower interest rates do not bode well for this sector, the Fed statement has led to the long-term bond yields contracting less than the short-term ones, thereby resulting in a steep yield curve. This steepening would bolster profits for banks, insurance companies, discount brokerage firms and asset managers. PFI offers exposure to 42 companies that are showing relative strength (momentum) by tracking the Dorsey Wright Financials Technical Leaders Index. It has gathered $58.4 million in its asset base and charges 60 bps in annual fees. The fund trades in volume of 11,000 shares a day on average.

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