Can Industrial ETFs Pave a Solid Path for Your Portfolio?

By Richard Bloch:So far this year, ETF fund flows indicate that investors are putting money to work in several sectors that were out of favor last year.I took at look at the nine major S&P500 sectors. Each stock in the S&P 500 belongs to one of these sectors, and each has its own SPDR Sector ETF. So looking at all nine offers some perspective on what's pushing the index higher this year,These ETFs include:

Michael Johnston submits:During the ongoing recovery effort, most sectors of the global economy have moved higher together. But not all industries have received an equal boost during the dramatic turnaround. After markets bottomed out in March last year, it was the financial and technology sectors that led the rally. In 2010, one of the least sexy sectors has sprinted to the front of the pack: industrials.

By Tom Lydon: The industrial sector has been upgraded from "Marketweight" to "Overweight" by S&P Capital IQ. Factors supporting an investment in related sector exchange traded funds include improved global GDP anticipated in 2013 along with economic stability in China verified by positive economic data.

Gary Gordon submits: Analysts like Bob Doll at Blackrock believe that U.S. economic growth will accelerate, with GDP likely to come in at a vibrant 3.5% for 2011. Economists polled at the Economist Intelligence Unit may be a little less enthusiastic, but they have raised their forecasts from 3.0% to 3.1%.

Gary Gordon submits: On the surface, the last Monday in June has been no different than the other trading days in the first half of 2010. Investors have been dumping energy and materials ETFs; what’s more, they’ve been getting rid of country ETFs that depend heavily on the energy or materials sectors.

Michael Johnston submits:Recent weeks have highlighted the “new normal” in the investing world, as concerns of a debt crisis in Europe have rippled throughout the global economy. On Wall Street, developments in the streets of Athens and the German Bundestag have trumped more local economic indicators, as U.S. markets have taken their cues from across the pond in recent weeks.

Richard Shaw (QVM Group) submits: Based on current and recent price behavior, these U.S. sector ETFs are the better trend following choices among the 10 U.S. sectors (as of 2011-05-11):