6 ETFs For A Scary September

PowerShares S&P SmallCap Information Technology Portfolio ETF (PSCT -ETF report)

If we go by the seasonality indicated by equityclock.com, September is not a strong month for the technology sector. Still we are picking a tech fund given the recent momentum in the sector and a growing economy, albeit slowly. Such a cyclical sector does well even in a rising rate environment. The earnings picture of the sector is also sound.

SPDR S&P Semiconductor ETF (XSD - ETF report)

Investors can also take a look at a few semiconductor ETFs like XSD. Within the broader tech space, semiconductor, the value-centric traditional tech area, is taking an upper hand against a still-edgy investing backdrop. Higher demand from emerging technology applications like tablets and smartphones despite still-subdued PC shipments are tailwinds to the space.

iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD - ETF report)

Extremely low levels of Treasury yields may drive corporate bond demand. Investors should also note that U.S. corporates are sitting on healthy cash balance and the overall earnings picture is also slowly improving with recession showing an ebbing trend, as per the Earnings Trends report issued on August 24, 2016.

However, it is wiser to bet on investment-grade products like LQD as the performance of the junk-bond segment is closely tied to the seesawing performance of oil prices. LQD yields about 3.22% annually.

ProShares VIX Short-Term Futures (VIXY - ETF report)

As September is known for poor equity returns, occasional volatility is likely to crack the whip. But given these products’ fickleness these suit investors with a short-term notion.

WisdomTree Europe Small-Cap Dividend ETF (DFE - ETF report)

Brexit fears in June end now seem overstated as the recently released British economic data point to positive sentiments. Be it retail, manufacturing or unemployment, data points expressed optimism. Meanwhile, other Euro zone counties are also faring decently in terms of composite PMI, consumer prices and corporate health.

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