Sector ETF

Dictionary Says

Definition of 'Sector ETF'

A class of exchange-traded fund that invests in the stocks and securities of a specific sector, typically identified in the fund title. Most sector ETFs focus on U.S.-based stocks, but several will invest globally in an attempt to capture the worldwide performance of the given sector. Assets will be passively managed around an underlying index; several use indexes provided from data services like S&P and Dow Jones. Leveraged sector ETFs are also available, which aim to achieve double the return of the underling index, both on advancing and declining trading days. 

Investopedia Says

Investopedia explains 'Sector ETF'

Sector ETFs have become very popular among investors, as they can be used to plug holes in otherwise diversified portfolios, or simply for hedging and speculating. Their high level of liquidity means that there are rarely any large tracking errors from the underlying index, even during intraday trading.

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'Sector ETF'

  • Chip Sector ETF a Short-Term Buy?

    http://stocks.investopedia.com/stock-analysis/moneyshow/ChipSectorETFaShort-TermBuy.aspx
    If the broad market finds a near-term bottom, the semiconductor sector should also
    rebound, and a leveraged chip sector ETF has significant upside for a quick ...
  • An Introduction To Sector ETFs

    http://www.investopedia.com/articles/exchangetradedfunds/08/sector-etfs.asp
    ... For example, purchasing an energy-sector ETF will allow an investor to make a bet
    on energy prices better than buying one or two energy stocks. ...
  • An Introduction To Pairs Trading With ETFs

    http://www.investopedia.com/articles/exchangetradedfunds/08/ETF-pairs-trade.asp
    ... and How To Use ETFs In Your Portfolio.) Intra-Sector ETF Pairs Trade ETFs have become
    increasingly popular over the years, and several ETFs are often available ...
  • Spread Out Risk With Sector-Based ETFs

    http://www.investopedia.com/articles/exchange-traded-funds/09/investing-with-sector-etfs.asp
    ... Sector Rotation Using Only Sector ETF In developing and implementing a system for
    sector ETF investment, it is important to select an appropriate benchmark ...
  • Easy-To-Understand ETFs - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1111/Easy-To-Understand-ETFs.aspx
    ... The most popular of these select sector ETFs are the Financial Select Sector ETF
    (NYSEArca:XLF), Industrial Select Sector ETF (NYSEArca:XLI) and the Consumer ...
  • 4 ETF Strategies For A Down Market

    http://www.investopedia.com/articles/exchange-traded-funds/09/etf-strategies-recession.asp
    ... This investor could purchase a consumer staples sector ETF to increase exposure
    to a sector that typically does better in a down market. ...
  • The Utilities Sector Is Still Full Of Bargains

    http://stocks.investopedia.com/stock-analysis/2011/The-Utilities-Sector-Is-Still-Full-Of-Bargains-SPLV-MORN-XLU-VPU-SO-AEP-WTR-MSEX-PSCU-IPU1125.aspx
    ... every portfolio. The previous picks along with the SPDR S&P International
    Utilities Sector ETF (ARCA:IPU) make ideal selections. ...
  • Leveraged ETFs: Are They Right For You?

    http://www.investopedia.com/articles/mutualfund/07/leveraged_etfs.asp
    ... A new twist on the strategy for aggressive investors could include using
    the ultra ETFs in place of a typical sector ETF. Investors ...
  • ETFs For Sector Rotation Strategies

    http://www.investopedia.com/articles/exchangetradedfunds/08/sector-rotation.asp
    ... up. When a sector reaches the peak of its move as defined by the economic
    cycle, investors should sell that ETF sector. Using this ...
  • 3 Steps To A Profitable ETF Portfolio

    http://www.investopedia.com/articles/mutualfund/07/add_ETFs.asp
    ... Implement Your Strategy The beauty of ETFs is that you can select an ETF
    for each sector or index in which you want exposure. Once ...

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