New ETFs allow trading in investor sentiment.
A couple of years ago, singer-songwriter Luke Combs released an album containing a tune entitled "Be Careful What You Wish For." I thought back to that lyric after reviewing messages sent from readers inquiring about the tradability of an ETF spread frequently referenced in this column.
The spread is the price ratio of the Consumer Discretionary Select Sector SPDR ETF ([[XLY]]) over the Consumer Staples Select Sector SPDR ETF ([[XLP]]). We use the ratio as an indicator of investor enthusiasm and confidence in large-cap stocks. The ratio increases