Why this ETF pro is so bullish on materials stocks

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Materials stocks like Freeport McMoRan are handily outperforming the broader market this year, and ETF professionals see opportunity in the space.

As materials stocks build on their gains, one investing professional is getting even more constructive on the space.

"We're positive on a number of these stocks that are in XLB," Rosenbluth, who runs ETF and mutual fund research at his firm, told CNBC's "ETF Edge" on Monday."This is ... a concentrated portfolio — 70% is within the top 10 holdings — but we at CFRA have strong buy or buy recommendations on many of them."

"We think this is a good way to play the materials theme," he said."I think investors are comfortable taking risk on with the Fed on pause where they are, [with] global economies doing well enough. I think investors are comfortable taking on a more cyclical slant." "They're both performing in line year to date," he said of the Materials Select Sector SPDR Fund and its smaller, equal-weighted counterpart, the Invesco S&P 500 Equal Weight Materials ETF.

 

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