February's sector performance was mostly positive. Funds like the Consumer Staples Select Sector SPDR (XLP) and the PowerShares Dynamic Food & Beverage ETF (PBJ) were up 3.27% and 3.74%, respectively. All of the ETFs representing U.S. financials finished in the positive, with the biggest gain in the iShares Dow Jones U.S. Broker Dealers ETF (IAI), at almost 3%. Other strong sector ETFs included the iShares Dow Jones Transportation Average ETF (IYT), which gained 3.47%; and the Power-Shares Dynamic Media ETF (PBS), which gained 3.66%.
However, some ETFs took a hit. The Materials Select Sector SPDR (XLB), tracking the broad basic materials sector, dipped 1.46% on the month. Even worse, the SPDR S&P Metals and Mining ETF (XME) fell more than 7%, as its heavy concentration in coal stocks weighed the fund down. Telecom also suffered, with the iShares Dow Jones Telecommunications ETF (IYZ) losing 4.29%, while the Vanguard Telecommunication Services ETF (VOX) dipped only 0.75%.
In flows, the iShares Dow Jones U.S. Real Estate ETF (IYR) added $877 million in net inflows, followed by the Financial Select SPDR (XLF) at $332 million and the Industrial Select SPDR (XLI) with $301 million. XME held the top spot in outflows, losing $189 million in February, followed by XLB with $164 million and the ProShares
Ultra Financials ETF (UYG) with $65 million.