Some of the headlines say September could be the worst ever for the stock market given all of the uncertainties springing from Syria, the Federal Reserve and congressional budget debates.

We asked ETF investing strategists to share their best investments idea for the final stretch of the year.

1. Reed Eckhout, market analyst at CitrinGroup in Birmingham, Minn. with $60 million in assets under management: PowerShares KBW Bank Portfolio ETF (ARCA:KBWB ).

September is expected to bring more volatility than usual to the stock market because of Syria, the Fed and the budget debates. View Enlarged Image

Expectation that the Federal Reserve will reduce Treasury and MBS (mortgage-backed securities) purchases have produced volatility especially in interest rates across the globe and the U.S. Historically, an environment of increasing interest rates coincides with poor performance in fixed income and a difficult environment for equities because corporations have to pay higher rates on newly issued debt.

However, unlike most corporations, banks tend to perform well in a rising rate environment. They borrow at low, short-term rates and lend at higher, long-term rates. And as interest rates rise, their profits increase from the widening spread. The Federal Reserve has stated that the discount rate will remain near zero until unemployment and inflation targets are met, which may not be until around 2015.

Even though financials have had a solid rally this year, they are still in the early innings of their full potential performance. U.S. financials just finished the second-quarter earnings season with 79% of companies beating expectations the highest rate among all sectors. They also enjoy the best earnings growth rate, 28%, among all sectors. Financials are trading at 12 times forward earnings estimates, while the S&P 500 trades at 14.1 times.

Additionally, they’re benefiting from improving credit conditions, improving gross loan growth and near-record capital ratios. Investment risks include exposure to Europe, new reforms or regulation and lawsuits.

KBWB is a concentrated, 24-company bank ETF that provides exposure to large and midcap value and growth stocks. It is based on the KBW Bank Index and is a float-adjusted, capitalization-weighted index. The ETF is comprised of the leading national money center banks and regional thrifts. Its top five holdings are Citigroup (NYSE:C ), JPMorgan Chase (NYSE:JPM ), Wells Fargo (NYSE:WFC ), Bank of America (NYSE:BAC ), and SunTrust Banks (NYSE:STI ).

2. Neena Mishra, Research Director at Zacks Investment Research in Chicago: Industrial Select Sector SPDR (ARCA:XLI ).

U.S. manufacturing activity has been quite upbeat of late, as manufacturers have been expanding production and adding jobs in response to the increased demand.

Many believe that the country is on the verge of a manufacturing renaissance, thanks mainly to lower energy prices, improving technology and rising labor costs in developing economies. Critics, on the other hand, point out that the manufacturing output in the country is still much lower than the beginning of the recession.