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What are Sector ETFs?

Sector ETFs hold a portfolio of stocks and other securities that represent a specific sector of the market.

Sector ETFS are managed portfolios of securities which are representative of a specific industry or market sector. They might passively track a sector index or be actively seeking alpha over the sector benchmark.

The word “sector” is a broad term for a grouping of companies in the market, but the word “industry” is sometimes used interchangeably. There are 10 sectors in the S&P 500: healthcare, financials, energy, consumer staples, consumer discretionary, utilities, materials, industrials, information technology, and telecommunications (telecom) services.

To learn more about the sector stocks listed above, please just click on the corresponding link.

There are ETFs that track each one. Various ETFs issued by different companies for the same industry or sector will have a different compositions depending on the methodology used to track the index or strategy used to seek alpha.

Be very careful when you choose a particular industry to invest in, and look at the composition of each particular ETF. Further reading and even personal help from advisors can be found here at Tickeron.

What Kinds of ETFs Exist?
What is Market Exposure?

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