When choosing an ETF, many investors look for a sector that they think will outperform the overall stock market. Once they have obtained a list of ETFs, then they often just buy the one that is the most liquid. Trading volume should always be a consideration when selecting an ETF. In my opinion, you must do further research as the performance of your ETF could depend on other factors.
All of the information you need can be found on many popular Web sites, but once you locate the details, like the expense ratio, don’t stop there. Many of the most liquid sector ETFs are run by State Street Global Advisors, and they have been the ones that I have recommended for many years. In last week’s 4 of the Year’s Best Sector ETFs, I reviewed the technical outlook on the four top performing Select Sector ETFs.
The Select Sector SPDR Technology ETF (XLK) on a YTD basis is currently not one of the best gainers but is one that I often recommended in the Charts in Play portfolio. The most recent position was stopped out in April for an 11.7% profit.
Source: Markets
