|By PR Newswire||
|January 8, 2014 09:30 AM EST||
CHICAGO, Jan. 8, 2014 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: iShares Industrials ETF (AMEX:IYJ-Free Report), Vanguard Information Technology ETF (AMEX:VGT-Free Report) and SPDR S&P Insurance ETF (AMEX:KIE-Free Report).
Best ETF Strategies for 2014
US stocks had a spectacular run in 2013—delivering their best annual performance in more than a decade. At current levels, stocks are not cheap but they are not too expensive either. An improving economy, receding fiscal drag and an accommodative monetary policy should support further gains in stocks though gains will most likely be nowhere close to last year's. (Read: 3 Hot Sector ETFs for 2014)
The Fed starts 'tapering' its asset purchase program this month and may announce further reductions at a "measured pace" this year if the economy and the labor market continue to improve.
With interest rates on the rise, the three decade long bull market for bonds has come to an end. The US bond market as measured by the Barclays US Aggregate Bond Total Return Index had a 2% decline in 2013. The losses may accelerate this year, particularly for long term treasury and mortgage bonds.
As we head into 2014, it may be a good time to look at your portfolio and realign it according to the changing investment landscape. (Read: 3 Best Dividend ETFs of 2013)
Top Sectors for 2014
Sectors like Technology, Industrials and Financials outperform in the improving economic and rising rate environment. Technology sector has remained mostly out of favor with investors last year due to several industry-specific issues and less-than supportive global macroeconomic environment. At current valuations, the sector looks attractive. Continued pick-up in the manufacturing activity bodes well for Industrials.
Among Financials, Banks—Regional Banks in particular—benefit from the steepening yield curve while Insurance companies benefit from rising rates as well as brightening economic picture. Consumer discretionary stocks had an excellent run in 2013 but they may continue their uptrend if the job market continues to heal. (Read: Follow Warren Buffett in 2014 with these sector ETFs)
Some of the top ranked ETFs from these sectors like iShares Industrials ETF (AMEX:IYJ-Free Report), Vanguard Information Technology ETF (AMEX:VGT-Free Report) and SPDR S&P Insurance ETF (AMEX:KIE-Free Report) are worth considering.
On the other hand, bond-like sectors including Utilities, Telecom and REITs will suffer setbacks if interest rates continue to rise.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: http://twitter.com/ZacksResearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
SOURCE Zacks Investment Research, Inc.