Services Sector ETF
Definition of 'Services Sector ETF'Exchange-traded funds (ETFs) that invest in either the consumer services sector or financial services sector of an economy. A consumer services ETF seeks to derive investment results that correspond to an underlying index of companies that provide products and services to consumers. A financial services ETF aims to derive investment results that track an underlying index of financial service providers such as banks and credit-card issuers. |
|
Investopedia explains 'Services Sector ETF'Since consumer spending accounts for a major part of most economies, the investment returns from a consumer services ETF would depend on the prevailing level of consumer sentiment, and hence consumer spending, in an economy. A consumer services ETF would generally include a wide range of companies that provide consumer goods and services, from cable providers and drugstore chains to hotel and retailers (both online and bricks-and-mortar).The investment returns from a financial services ETF are dependent on the performance of the financial sector, which is also closely tied to the performance of the broad economy. Such an ETF would include banks, trusts companies, asset managers, credit-card issuers and other providers of financial services. |
Related Definitions
Articles Of Interest
-
Spread Out Risk With Sector-Based ETFs
These ETFs take the sector rotation strategy from institutional investors and puts it in your hands. -
An Introduction To Sector ETFs
Find out how these specialized ETFs can give your portfolio the punch it needs. -
ETFs: How Did We Live Without Them?
These funds burst onto the scene in 1993 and have continued to provide new opportunities for investors since. -
Multi-Asset Funds Or Your Own Mix?
The underlying concept of mixed funds is very appealing. Discover if you're better off with professional management or creating a mixed fund of your own. -
The Best ETFs For Your 401k
ETFs can be a good alternative to traditional retirement fund options because of their low cost, superior performance and liquidity. -
Why You Should Invest In Municipal Bond ETFs
These versatile instruments have become popular with investors in higher tax brackets and fill a specific niche in the wide selection of fixed-income offerings. -
The Best Way To Buy Silver
Discover whether ETFs or physical bullion is the best way for investors to get exposure to silver. -
Home Sales Hit Fastest Pace In Three Years
The pace of home sales hit a three-year high in February, a sign the economy is definitely on the mend. Homebuilder stocks have had a huge run the past year. I'll look at how to play what seems ... -
The Truth Behind Tactical ETF Investing
Are tactical ETFs reasonable and effective investment strategies or just plain speculative behavior? -
Introduction To Blackrock ETFs
Blackrock's line of offerings can provide liquidity, diversity and transparency for both sophisticated and novice buyers.
Free Annual Reports