ISM Services Index Rebounds in October: ETFs in Focus
The Institute for Supply Management (ISM) recently announced fresh figures for its service index for the month of
A Glimpse at the Data
The ISM reported its service index reading at 54.7% for
Meanwhile, the Non-Manufacturing Business Activity Index jumped to 57% from the
Also, according to the ISM report, the 13 non-manufacturing industries that witnessed growth in
Then again, the industries which reported a
ISM chair
Encouraging Data Releases
The robust jobs data report for October has instilled optimism among investors. In the month, U.S. employers added 128,000 new jobs, after an upwardly revised 180,000 gains in September. The latest number beat market expectations of 89,000. After revisions, job gains averaged 38,000 per month over the last three months (read:
Moreover, the U.S. economy grew an annualized 1.9% in the third quarter of 2019, surpassing expectations of 1.6%, following a 2% uptick in the previous three-month period. Continued consumer spending as well as government expenditures contributed to growth(read:
ETFs in Focus
Wall Street is at a record high right now. The release of positive service sector data should support the upside. Let us now discuss a few ETFs focused on providing exposure to U.S. equities.
SPDR S&P 500 ETF Trust
This fund is the most popular ETF traded in the U.S. markets. It seeks to provide exposure to the largest and most stable companies and tracks the S&P 500 index.
It has AUM of $280.38 billion and charges a fee of 9 basis points a year. From a sector look, the fund has high exposure to Information Technology, Health Care and Financials with 22.39%, 13.71% and 13.16% allocation, respectively. The fund has returned 25.6% year to date. It currently has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read:
iShares Core S&P 500 ETF
This fund is a low-cost ETF that seeks to provide exposure to the large established U.S. companies and tracks the S&P 500 index.
It has AUM of $193.57 billion and charges a fee of 4 basis points a year. From a sector look, the fund has high exposure to Information Technology, Health Care and Financials with 22.34%, 13.68% and 13.13% allocation, respectively. The fund has returned 25.7% year to date. It currently has a Zacks ETF Rank #2 with a Medium risk outlook.
Invesco QQQ ETF
This fund is a popular ETF that tracks the Nasdaq 100 index.
It has AUM of $79.30 billion and charges a fee of 20 basis points a year. From a sector look, the fund has high exposure to Information Technology, Communication Services and Consumer Discretionary with 46.35%, 21.52% and 15.57% allocation, respectively. The fund has returned 33.2% year to date. It currently has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
SPDR Dow Jones Industrial Average ETFTrust
The fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Dow Jones Industrial Average.
It has AUM of $21.97 billion and charges a fee of 17 basis points a year. From a sector look, the fund has high exposure to Industrials, Information Technology and Financials with 20.42%, 20.26% and 14.75% allocation, respectively. The fund has returned 21.2% year to date. It currently has a Zacks ETF Rank #1 with a Medium risk outlook.
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