DKosig 2024 has been a great year for stock picking and sector rotations. While all the hype remains focused on Nvidia ( NVDA ) and technology ( XLK ), I have caught some nice trades on less fashionable sectors such as utilities ( XLU ) and consumer staples ( XLP ). And it may be a surprise to learn the best performing sector YTD is not technology, but communications ( NYSEARCA: XLC ).

This article looks at what is driving this strength and some concerns on XLC's composition. The SPDR Sectors I have grown to really like the SPDR Sector ETFs. They may not always have the best performing ETF in a particular sector, and are less diversified than many other funds, but you know in advance exactly what you will get.

All SPDR Sector ETFs are passively managed and have the same portfolio composition using a modified "market capitalization" methodology. Moreover, they are all liquid, have large AUMs and share a very low 0.09% expense ratio.

The SPDRs are a very reliable, easy way to rotate through sectors, or as the fund page states, "You can purchase the eleven Select Sector SPDRs in weighting consistent with the S&P 500 or use your own weighting to meet specific investment goals." Here is the YTD performance of all 11 ETFs - SPDR Sector Performance (SectorSPDRs ) As mentioned earlier, XLC leads the pack, and by a long way - second place technology is lagging by over +4%. Introducing XLC XLC is a relatively new ETF launched in 2018 when major changes were implemented to the Global In.