Three ETF sectors in the US stock market that are worth investing in the most
The forward PE is the lowest
XLE (Energy) 12.0x — the lowest value with a clear gap. Benefiting from rising oil prices, the expected Q2 earnings growth rate is as high as +76%. With a PEG of only 0.2, it is the cheapest valuation + strongest growth combination among all sectors. Up +25.5% year-to-date.
XLF (Financials) 15.9x — the second-cheapest sector. Earnings growth is steady at +7.2%, and a PEG of 2.2 is reasonable. The banking sector benefits from the interest-rate environment (the federal funds rate stays at 3.75%) and trading income. Up +3.2% year-to-date.
XLB (Materials) 17.6x — the third-lowest. Earnings growth of +30.2% is very impressive. A PEG of only 0.6 makes it an excellent value for money. Up +10.2% year-to-date.
The forward PE is the lowest
XLE (Energy) 12.0x — the lowest value with a clear gap. Benefiting from rising oil prices, the expected Q2 earnings growth rate is as high as +76%. With a PEG of only 0.2, it is the cheapest valuation + strongest growth combination among all sectors. Up +25.5% year-to-date.
XLF (Financials) 15.9x — the second-cheapest sector. Earnings growth is steady at +7.2%, and a PEG of 2.2 is reasonable. The banking sector benefits from the interest-rate environment (the federal funds rate stays at 3.75%) and trading income. Up +3.2% year-to-date.
XLB (Materials) 17.6x — the third-lowest. Earnings growth of +30.2% is very impressive. A PEG of only 0.6 makes it an excellent value for money. Up +10.2% year-to-date.