“One could argue the KRE could be used as a more cost-effective way to synthetically get out of the PBCT position,” the strategists wrote.
Not all ETFs fit the bill. A lot of them don’t offer more liquidity than the underlying stocks or don’t track them closely. Below are some funds that Goldman says meet both criteria:
- iShares U.S. Real Estate ETF (IYR)
- Vanguard Real Estate ETF (VNQ)
- Utilities Select Sector SPDR Fund (XLU)
- VanEck Vectors Semiconductor (SMH)
- SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
This article was provided by Bloomberg News.