Diversified Stock Portfolio: 5 Sector ETFs and International ETFs to Buy

In this article, we discuss 5 best sector and international ETFs to buy. If you want to read our detailed discussion on the different markets, head over to Diversified Stock Portfolio: 10 Sector ETFs and International ETFs to Buy.

5. Invesco Building & Construction ETF (NYSE:PKB)

5-Year Performance as of September 26: 67.48%

The Invesco Building & Construction ETF (NYSE:PKB) is one of the best ETFs to diversify investors’ stock portfolios. It is based on the Dynamic Building & Construction Intellidex Index. Invesco Building & Construction ETF (NYSE:PKB) normally invests at least 90% of its total assets in the securities that make up the index. This ETF was introduced on October 26, 2005. As of September 26, 2023, it features an expense ratio of 0.57% and holds a portfolio of 31 stocks.

Lennox International Inc. (NYSE:LII) is one of the largest holdings of the Invesco Building & Construction ETF (NYSE:PKB). Lennox International Inc. (NYSE:LII) is involved in creating, producing, and selling a variety of products for the heating, ventilation, air conditioning, and refrigeration markets. Their operations span across the United States, Canada, and worldwide. Lennox International Inc. (NYSE:LII)’s business is divided into three segments – Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration.

According to Insider Monkey’s second quarter database, 31 hedge funds were bullish on Lennox International Inc. (NYSE:LII), same as the previous quarter. Dmitry Balyasny’s Balyasny Asset Management is the largest stakeholder of the company, with 533,892 shares worth $174.1 million.

The London Company Mid Cap Strategy made the following comment about Lennox International Inc. (NYSE:LII) in its second quarter 2023 investor letter:

“Lennox International Inc. (NYSE:LII) – LII outperformed during 02. While residential HVAC volume turned negative, current trends are consistent with expectations. Additionally, the new CEO is executing well against stated objectives, specifically, on restoring profitability of the Commercial segment. We are also supportive of management’s decision to sell the international business, which we viewed as a subscale distraction. We see LII as a high quality business in a good industry with opportunities to improve, and we are pleased to see the company effectively attacking opportunities for improvement.”