4 Best-Performing Sector ETFs Of February

Amid global slowdown concerns, the market bulls continued their strong run in February on progress in the U.S.-China trade deal. In the latest sign of progress in bilateral trade talks, Donald Trump postponed the date for boosting tariffs on Chinese imports.

The Federal Reserve also played an important role in driving market sentiments. The central bank said that it will be patient in raising rates, citing mounting risks to the U.S. economy, including slowdown in Chinese and European economies, and waning stimulus from 2018 tax cuts.

Thanks to these twin tailwinds, the Dow Jones broke 26,000 for the first time since Nov 9 this week and the S&P 500 rose to the highest closing level since Nov 8. The S&P 500 has rallied 19% from the December low, and is now 5% away from its all-time high, while the Dow Jones is enjoying its strongest rally in 24 years by moving up for the ninth consecutive week. Meanwhile, the tech-heavy Nasdaq also notched its ninth consecutive week of gains, marking its longest winning streak since May 2009.

While the rally has been broad-based, we have highlighted four sectors ETFs that have gained double-digits in February and could be better plays in the months ahead should the trends prevail.  

iShares North American Tech-Multimedia Networking ETF (IGN - Free Report)

The technology sector, which was beaten down badly in fourth quarter last year, staged a solid comeback on signs of progress in the U.S.-China trade deal. A slew of stronger-than-expected earnings results by major technology firms also renewed investors’ sentiment. While most of the ETFs are trending higher in February, IGN is leading the way, climbing 12.6%. This ETF provides exposure to telecom equipment, data networking, and wireless equipment companies by tracking the S&P North American Technology-Multimedia Networking Index. It holds 21 securities in its basket with each accounting for less than 9.3% share. The product has accumulated $97.5 million in its asset base while seeing a lower volume of around 23,000 shares a day. Expense ratio comes in at 0.47%. The fund carries a Zacks ETF Rank #2 (Buy) with a High risk outlook.

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