Market Overview

2 Investment Pros Share Their Top ETF Picks For Q4


Monday marks the first trading day of the final quarter of 2016 and investors looking to re-balance or make changes to their portfolio could consider several ETFs that are recommended by Oppenheimer's Ari Wald and S&P Global's Erin Gibbs.

Speaking as a guest on CNBC's "Trading Nation," Wald recommended the PowerShares S&P 500 High Beta Portfolio ETF (NYSE: SPBH). The analyst pointed out that high beta stocks are expected to outperform a rising market and he believes the market is "setting up for what should be a strong fourth quarter, a sentiment-induced rally."

The ETF holds companies which Wald describes as having "breakout potential." Top holdings in the ETF include Chesapeake Energy Corporation (NYSE: CHK), Williams Companies Inc (NYSE: WMB) and Freeport-McMoRan Inc (NYSE: FCX).

Technology ETF

Gibbs, S&P Global's equity chief investment officer, told CNBC her top ETF pick for the fourht quarter is the Technology SPDR (ETF) (NYSE: XLK). She noted that technology stocks have "obviously been the leader" during the third quarter and this will continue playing out in the fourth quarter.

Gibbs added technology stocks have the ability to post strong earnings growth and the sector as a whole is trading at a discounted valuation relative to the overall market.


Related Articles (XLK + SPBH)

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