Sector ETFs dissect the market according to their economy activity. These products are popular with investors looking for targeted exposure in addition to their core equity exposure, as well as those looking to take advantage of long-term trends in the economy.
Furthermore, investors can benefit from the low correlations between each sector, which allows for easier risk management. From an active management perspective, they can also implement sector rotation strategies.
With 519 ETFs traded on the U.S. markets, Sectors ETFs have total assets under management of $650.14B. The average expense ratio is 0.61%. Sectors ETFs can be found in the following asset classes:
The largest Sectors ETF is the Vanguard Information Technology ETF VGT with $41.23B in assets. In the last trailing year, the best-performing Sectors ETF was TAN at 238.89%. The most recent ETF launched in the Sectors space was the Franklin Exponential Data ETF XDAT on 01/12/21.