Q3 2025 Sector Ratings for ETFs and Mutual Funds: Consumer Non-cyclicals, Telecom Services, and Financials Earn Attractive Ratings

The article discusses sector ratings for ETFs and mutual funds as of Q3 2025. The Consumer Non-cyclicals, Telecom Services, and Financials sectors earn an Attractive-or-better rating. The ratings are based on a normalized aggregation of stock ratings for each sector.

As of the third quarter of 2025, the Consumer Non-cyclicals, Telecom Services, and Financials sectors have earned an Attractive-or-better rating, according to recent sector ratings for ETFs and mutual funds [1]. These ratings are derived from a normalized aggregation of stock ratings within each sector, reflecting the overall quality of holdings and management within the funds.

The Consumer Non-cyclicals sector stands out with the State Street Consumer Staples Select Sector SPDR Fund (XLP) receiving a Very Attractive rating. This fund allocates over 19% of its value to Attractive-or-better-rated stocks, indicating strong portfolio management and stock-picking skills [1]. Conversely, the Rydex Series Utilities Fund (RYUTX) is the worst-rated Utilities fund, earning a Very Unattractive rating by allocating over 83% of its value to Unattractive-or-worse-rated stocks and charging investors annual costs of 4.71% [1].

Only the top 30% of all ETFs and mutual funds receive an Attractive-or-better rating, underscoring the stringent criteria for these ratings. The average total annual cost (TAC) of Very Unattractive funds is nearly seven times that of Very Attractive funds, highlighting the importance of low costs in fund selection [1].

Investors seeking quality funds should focus on the sectors mentioned, as they offer a higher concentration of Attractive-or-better-rated funds. Figures 4 through 7 provide detailed breakdowns of sector ratings by fund type, while Figures 8 through 13 illustrate the distribution of funds by rating categories [1].

References:
[1] https://seekingalpha.com/article/4805617-sector-ratings-for-etfs-and-mutual-funds-q3-2025