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3 Sector ETFs to Bet On Despite Soft November Jobs Data

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U.S. employers added 155,000 jobs in November, after a downwardly revised 237,000 in October. The number fell short of market expectations of 200,000. Investors should note that data for October was revised down from +250,000 to +237,000. Meanwhile, data for September was raised from +118,000 to +119,000.

Taking all revisions into consideration, job gains averaged 170,000 over the past three months and data for September and October combined was 12,000 less than reported previously. The unemployment rate fell to 3.7% last month. Average hourly earnings rose by 6 cents to $27.35. Over the year, average hourly earnings increased 3.1%. Data supports prevailing concerns about the slowing economy (read: 5 Sector ETFs to Sizzle on Upbeat October Jobs Data). 

Still, there are some corners of the economy that have been creating jobs. Against this backdrop, investors may choose to bet on ETFs that are the largest beneficiaries of the November jobs data report. Below we have highlighted some of these that will likely see smooth trading in the days ahead.

Health Care

Jobs in the health care sector grew by 32,000 in the month, wherein ambulatory health care services and hospitals added a respective 19,000 and 13,000. Per tradingeconomics, health care employment rose by 328,000 over the past year.

This trend puts the spotlight on First Trust Health Care AlphaDEX Fund FXH. The fund has considerable exposure to Health Care Providers & Services and Health Care Equipment & Supplies. Biotechnology also has substantial focus on this fund. The fund has a Zacks Rank #2 (read: Want to Tap Merger Mania? Play Top-Ranked Health Care ETFs).


Last month, manufacturing employment grew by 27,000, courtesy of a gain in chemicals (+6,000) and primary metals (+3,000). Manufacturing created 288,000 jobs in the year. This makes SPDR S&P Metals & Mining ETF (XME) a good investment. The underlying index of the fund comprises sub-industries like Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel (read: Best & Worst ETFs of Thanksgiving Week).


There were 25,000 job additions in Transportation and warehousing in November. Within the industry, couriers and messengers saw 10,000 job growth and warehousing and storage saw another 6,000 additions. Year over year, employment in transportation and warehousing rose by 192,000. This puts the spotlight on iShares Transportation Average ETF IYT and First Trust Nasdaq Transportation ETF FTXR (read: Transport ETFs Look Bright Post Solid Q3 Earnings).

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FT-HEALTH CARE (FXH): ETF Research Reports
ISHARS-TRAN AVG (IYT): ETF Research Reports
SPDR-SP MET&MIN (XME): ETF Research Reports
FT-NDQ TRANSPRT (FTXR): ETF Research Reports
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