Right from the beginning of 2020, global events have been pulling the strings of the investing world. While negative stories included Middle East tensions and outbreak of Coronavirus, the signing of the U.S.-China phase-one trade deal was a positive one. The broader market remained a bit volatile, having reacted to such issues. The S&P 500 has gained about 2% so far this year, after a stellar 2019.

The road ahead from here would be mixed with the uncertainty regarding the U.S. presidential election, the fate of Brexit, and the level of execution of the U.S.-China trade deal. Global growth momentum is also showing signs of slowdown, though worldwide monetary policy easing should continue to support the stock market (read: Global Policy Easing Cycle Set in Motion: ETFs to Win).

Against this backdrop, we highlight five top sectors and pick the top industries from there. We also mention ETFs from those wining industries that could be great picks in 2020.

Construction – Home Builders – iShares U.S. Home Construction ETF ITB

The construction sector currently has a Zacks Rank of #1. Under this sector, home builders currently belong to a favorable Zacks industry (placed at the top 20% of 250+ industries). Groundbreaking on new U.S. homes surged to a 13-year high in December. U.S. housing starts spiked 16.9% to a seasonally adjusted annual rate of 1.361 million homes in December, the highest level since December 2006.

Existing-home sales, which regulate the major share of the U.S. housing market, recoiled in December, despite the inventory hitting a 20-year low (read: Homebuilder ETFs Shining in 2020: Will This Continue?)

A sharp decline in the 30-year fixed mortgage rates last year amid Fed rate cuts boosted the sector. The Zacks Rank #3 (Hold) fund has spiked 8.6% this year, after gaining 49.7% the past one year.

Technology – Software – SPDR S&P Software & Services ETF XSW

The sector currently has the second-highest Zacks Rank of 2. Under this sector, software space looks to be greatly positioned. The space comes froma favorable Zacks industry (top 20%). Global IT spending is set for a revival in 2020 with growth forecast of 3.7%, primarily due to enterprise software spending, per Gartner. The fund has a Zacks Rank #1 (Strong Buy). The fund is up 9 4.6% this year and has gained 31.9% past year.

Medical – Service Providers, Pharma & Biotech – Health Care Select Sector SPDR Fund XLV

The sector currently has Zacks Rank #3. Inside the sector, nursing homes (top 9%), hospitals (top 20%), large-cap pharma (top 20%) and biotech (top 33%) have a favorable Zacks Rank.