Sector SPRF ETFs

Jason Snipe, founder and CIO at Odyssey Capital Advisors, joins CNBC's “Halftime Report” to explain why he's getting out of Energy.

Designed to provide broad exposure to the Technology - Broad segment of the equity market, the Technology Select Sector SPDR ETF (XLK) is a passively managed exchange traded fund launched on 12/16/1998.

I am bullish on the Health Care Select Sector SPDR ETF (XLV) due to its attractive valuation, strong technical setup, and favorable seasonality heading into Q4. Eli Lilly (LLY) is a standout component, contributing significantly to XLV's valuation, but the ETF remains appealing even when backing out LLY's high P/E ratio. XLV offers diversified exposure across various healthcare industries, with significant holdings in large-cap stocks like UnitedHealth Group (UNH), Johnson & Johnson (JNJ), and Merck (MRK).

The Fed announced a 50-basis-point cut in interest rates this week, marking its first reduction since March 2020. This should benefit consumer stocks.

Midstream and Energy have both been on a strong run in recent years. We compare the sectors in light of current macro factors. We then take a look at representative ETFs (XLE and AMLP) and share which is worth buying today.

XLF is a low-cost, passively managed ETF heavily weighted in top financial companies, including banks and payment processors like Visa and Mastercard. The Fed's imminent rate cuts will impact financials, with mixed effects on XLF due to lower NIMs and increased loan activity. XLF should be able to perform well in rate-cutting cycles, but it depends on how and why rates are lowered.

The rise of consumer sentiment to a four-month high in early September bodes well for household spending and the consumer discretionary sector.

Oil heads for its first weekly gain in a month buoyed by Hurricane Francine but fails to spur energy ETFs.

Sector-oriented exchange-traded funds (ETFs) offer a way to gain exposure to an entire portfolio of companies that may be benefiting from trends in the market. They provide diversification from the business-specific risk of investing in just individual companies.