Gaming Out ETF Plays For A Manufacturing Comeback

2025-02-13 08:59:00 ET

Summary

• With the Institute for Supply Management’s Manufacturing Purchasing Managers Index breaking into expansion mode with its 50.9 showing in January, investors who are anticipating a 2025 manufacturing recovery may find opportunities in sectors that are associated with an industrial rebound.
• ETF strategies like WTV and USMF align with historical sector trends during manufacturing recoveries, while Funds like DGRW and DLN may appeal to investors who are skeptical of the manufacturing rebound.
• Someone who is putting an asterisk on Tech. Go for the ones with Financials, Industrials and Materials: AIVL, WTV.

By Jeff Weniger, CFA

Figure 1 marks all the months that witnessed the ISM PMI cross above 50 since WisdomTree launched ETFs in 2006. For example, in the first row, manufacturing made a move into expansion in summer 2008, as hard as that is to believe. The PMI had been in the 48–49 range for five months before it went to 50.8 that July. We know, in retrospect, that it would be just a few more months before Lehman would collapse....

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