Leading ETFs to Buy on Any Weakness

U.S. stocks are once again hitting new highs and a wide range of sectors throughout the market fuels it. And even though the bull market is nearly six years in age, there are a large number of investors looking to put more money to work. Any type of pullback in the strongest sectors will be buying opportunities for long-term investors.

Highlighted below are two ETFs that have performed well and a pullback is will provide a solid buying opportunity.

The Financial Select Sector SPDR ETF XLF tracks 87 companies in the financial sector with the banks making up 36 percent of the portfolio. The top individual holdings include Berkshire Hathaway Inc. Class B BRKB at 8.9 percent, Wells Fargo & Company WFC with an 8.5 percent holding, and JPMorgan Chase & Co. JPM coming in at 7.7 percent.

The ETF is up 10 percent in 2014 and 11 percent over the last six months. An expense ratio of 0.16 percent makes it one of the cheapest ETFs in this sector. XLF hit a high of $24.31 on November 11^th and has been pulling back over the last week as it finds support at the $23.85 area. The healthy pullback could be a great opportunity for investors to build a position in a sector that should be a leader in the next leg higher for the U.S. market.

The PowerShares BuyBack Achievers ETF PKW is comprised of 172 U.S. companies that have effected a net reduction in shares outstanding of 5 percent or more in the last 12 months. The ETF is distributed across ten sectors with consumer discretionary at 32 percent and information technology at 18 being the most heavily weighted sectors. Following the financial crisis many companies began to stockpile cash and now with the economy improving it has led to the buying back of shares or distributions of dividends.

The top individual holdings are Oracle Group ORCL with a 5.2 percent holding, Home Depot Inc HD making up 5.1 percent, andPfizer Inc PFE at 5 percent.  PKW is up 9 percent year to date and 9 percent over the last 6 months as well. With PKW currently trading at an all time high just above $47, a pullback to the $46.50 area would trigger a solid buying opportunity.

It is almost impossible to time the market perfectly and those who attempt to often are not pleased with their results. Therefore, investors should use any weakness within a very strong bull market to put money to work in what appears to be the best asset class around the globe.