Two ETF Picks For The Fourth Quarter - TheStreet

NEW YORK (TheStreet) --Friday marks the final trading day of the 2016 third-quarter. As we transition to the final three months of trading left in the year, the focus of this afternoon's "Trading Nation" segment on CNBC was about the best ETF play in the fourth quarter.

S&P Global equity chief investment officer Erin Gibbs and Oppenheimer head of technical analysis Ari Wald both gave their top ETF pick. 

"We like technology, transports, and energy. If there is one ETF for some diversity that includes all these areas we recommend buying, it's the S&P High Beta ETF (SPHB)," Wald said.

Wald noted that even though this ETF is trading below its previous cycle line, while the S&P 500 is fresh off a new all-time high, he still sees potential.

"There's some relative catch up potential here just to get back to that prior peak which is around $36, that would be a 10% rise from current levels, plus breakout potential above that prior resistance," he added.

Gibbs, agreeing with Wald that technology should be a focal point, has her sights set on the S&P Technology SPDR (XLK).

"Technology has been the leader for Q3, but we really see it continuing in Q4. We're still seeing very good earnings growth of about 3.5% for this quarter, 4.5% for fourth-quarter. But even after this run-up we've seen in Q3 it still trading at lower valuations than the S&P 500 and you're getting better-than-expected growth," she explained.