First Trust NASDAQ Global Auto Index
My next pick is the entire automotive sector. But rather than try to cherry-pick the best of a very strong lot, I’m going to recommend the First Trust NASDAQ Global Auto Index (CARZ), up 28% through Sept. 4. Although its expense ratio is a hefty 0.7%, the car industry’s on too much of a roll to ignore.
According to BusinessWeek, Ford (F) sold an F-Series truck every 38 seconds in August. Americans are finally replacing their old beaters (the average age of cars on road is more than 11 years), and CARZ will be a major beneficiary of this cyclical trend — with or without higher oil prices.