7 cyclical industry ETFs for a bull run

Sectors out of favor since the financial crisis are outperforming defensive ones in the recent rally.

By MoneyShow.com Jun 5, 2013 1:54PM

Gambling copyright CorbisBy Daniela Pylypczak, ETFdb.com

Certain corners of the market that were once hammered by the 2008 financial crisis are now finally showing signs of life. 

Cyclical industries in particular have benefited significantly from this year's bull market, as investors shift their focus to riskier and more promising sectors of the market.

For those looking for ways to play this trend, we highlight seven of the most popular cyclical industry ETFs that may stand to benefit in this market:

NASDAQ Global Auto Index Fund (CARZ
This ETF is currently the only fund that offers targeted exposure to the global automobile industry. The fund’s top holdings include Ford (F), Honda Motor Co. (HMC), Hyundai Motor Co. (HYMLF), and Toyota Motor Corp. (TM), which together account for over one-third of the fund’s total assets. With regards to geographic diversification, CARZ offers exposure to Japan, US, Germany, South Korea, and China.

Market Vectors Gaming ETF (BJK
This Van Eck offering is designed to invest in publicly traded companies worldwide that derive more than half of revenues from the global gaming industry. BJK's portfolio consists of roughly 47 individual holdings, featuring exposure to some of the top names in the industry, such as Las Vegas Sands Corp. (LVS) and Wynn Resorts (WYNN). The fund also features a well balanced mix of giant-, large-, and mid-cap stocks, as well as some exposure to smaller capitalization companies.

Dynamic Leisure & Entertainment Portfolio (PEJ
Debuting in 2005, PowerShares' PEJ is still the only fund available on the market that exclusively focuses on the leisure and entertainment industry. About one-third of the fund's portfolio is made up of publicly traded restaurants, featuring popular names like Starbucks (SBUX) and Fiesta Restaurant Group Inc. (FRGI). PEJ also features allocations to several other sub-industries, including movies and entertainment, hotels, cruise lines, broadcasting, and casinos.

Market Vectors Steel Index ETF (SLX
This ETF allows investors to gain exposure to companies involved in a variety of activities related to steel production, including the operation of manufacturing mills, fabrication of steel products, and iron ore extraction and reduction. Though SLX's portfolio is relatively shallow with its 26 holdings, it does offer meaningful exposure to steel equities from around the globe (MoneyShow), featuring allocations to the U.S., Brazil, the UK, and South Korea.

MSCI Europe Financials Sector Index Fund (EUFN
This iShares' fund offers exposure to the financials sector of developed market countries in Europe. Just over half of EUFN's total assets are allocated to banks, while insurance, diversified financials and real estate equities account for the remainder of the portfolio. Top country allocations include the UK, Switzerland, France, and Germany.

SPDR DJ Wilshire International Real Estate Fund (RWX
With over $4.2 billion in assets under management, RWX is by far the most popular option for investors looking to add global real estate exposure to their portfolios. The fund holds roughly 130 individual securities, the majority of which are large- and mid-cap companies. Exposure is nicely spread out across various countries, including Japan, Australia, Hong Kong, and the UK.

Fertilizers/Potash ETF (SOIL
This ETF is designed to track the performance of the largest and most liquid companies from around the globe that are active in some aspect of the fertilizer industry. Though SOIL's portfolio is rather shallow with its 25 holdings, the fund does offer broad geographic diversification as well as well-balanced exposure to small-, mid- and large-cap equities.

More from The MoneyShow 



Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123 rated 1
262 rated 2
480 rated 3
651 rated 4
649 rated 5
629 rated 6
616 rated 7
496 rated 8
346 rated 9
111 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.