Which Sector ETFs Offer Opportunities as U.S. Inflation Cools?

September 2025 brought mixed signals for investors tracking consumer price movements. The monthly increase in U.S. consumer prices reached 0.3%, trailing slightly below the anticipated 0.4% advance and August’s 0.4% reading. On an annual basis, the consumer price index expanded 3%, falling short of economist forecasts. Core inflation metrics—excluding food and energy costs—climbed just 0.2% for the month, marginally below expectations of 0.3% growth.

While the overall inflation picture appears to be moderating, specific sectors tell a different story. Energy sector inflation registered 1.5% month-over-month and 2.8% annually, driven primarily by a 4.1% surge in gasoline prices. Food prices showed more modest movement at 0.2% for the month, with food-away-from-home growing 3.7% annually versus food-at-home at 2.7%.

Identifying High-Potential Sector ETFs for Near-Term Gains

Energy Opportunities Through Oil Services Exposure

The VanEck Oil Services ETF (OIH) provides direct exposure to U.S.-listed companies supplying critical services to upstream oil operations, including drilling equipment, services, and infrastructure. With energy inflation contributing meaningfully to overall price pressures, companies in this space remain positioned to benefit. Murphy USA (MUSA), carrying a Zacks Rank #3 (Hold) designation, stands out as a leading independent fuel retailer and convenience merchandise provider across the United States.

Restaurant Sector ETF: Capitalizing on Food-Away-From-Home Demand

The AdvisorShares Restaurant ETF (EATZ) actively invests a minimum of 80% of assets in restaurant operators, including both limited-service and full-service establishments. The food-away-from-home index advanced 0.2% monthly for limited-service meals and remained flat for full-service dining. Notably, Red Robin Gourmet Burgers (RRGB), awarded a Zacks Rank #1 (Strong Buy), operates a well-established casual dining chain specializing in diverse burger offerings and deserves investor attention.

Healthcare Sector ETF: Riding Medical Services Growth

The Health Care Select Sector SPDR ETF (XLV) tracks companies across pharmaceuticals, healthcare providers, medical equipment suppliers, biotechnology, life sciences tools, and healthcare technology. Medical care services posted a 3.9% annual increase with 0.3% sequential growth in September. Universal Health Services (UHS), rated Zacks Rank #2 (Buy), operates acute care hospitals, behavioral health facilities, surgical centers, and radiation oncology facilities through its subsidiary network.

Transportation Sector ETF: Benefiting from Moderate Cost Pressures

The SPDR S&P Transportation ETF (XTN) tracks the S&P Transportation Select Industry Index, capturing the transportation segment of broader equity markets. The transportation index climbed 0.3% sequentially and gained 2.5% year-over-year. Delta Air Lines (DAL), ranked Zacks Rank #2, commands significance as one of four major carriers controlling approximately 60% of U.S. aviation market capacity.

Strategic Takeaway for Sector ETFs Investors

The current inflation environment, while moderating overall, continues to create differentiated opportunities across specific sector ETFs and their underlying holdings. Energy, healthcare, and transportation segment ETFs demonstrate particular merit given current economic conditions and forward-looking sector dynamics.