Sector ETF Study Points to Technology

A recent study of the nine Select SPDR ETFs indicates that “the sector ETF with the highest price performance for one calendar month has a 65% chance of being up during the next month and a 55% chance of doing better than the SPY.”

The nine S&P sector ETFs are: XLB – Materials sector

XLE – Energy sector

XLF – Financial sector

XLI – Industrial sector

XLK – Technology sector

XLP – Consumer Staples sector

XLU – Utilities sector

XLV – Healthcare sector

XLY – Consumer Discretionary sector

While past results are not a guarantee of future performance, XLK, the Technology Sector ETF was up 7.1% in June, far ahead of other sector ETFs.  This momentum approach suggests that the technology sector is the place to look for trading opportunities in the month of July.