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Sector Investing Precise Exposures and Valued Insights from the Market Leader
Return dispersion among sectors can create opportunities for investors to pursue alpha, manage risk, or capture cyclical or thematic trends. As the world’s first and largest sector ETF provider,1 State Street SPDR ETFs provide targeted, efficient strategies that investors can use to express their views with precision across the business cycle.
A Leader in Sector Investing
Since launching the world’s first suite of sector ETFs in 1998, we have been committed to using our expertise in indexing, portfolio construction and liquidity management to provide efficient tools for executing sector investing strategies. We are one of the world’s largest asset managers, giving us the resources and ability to deliver scalable sector ETF solutions for investors of all sizes.
first and largest sector ETF provider in the world 1
in sector strategies globally 2
years of experience managing sector ETFs
Delivering Liquidity Across Sectors
We are committed to pursuing tight trading spreads and increasing liquidity in our sector ETFs to enhance the efficiency of these tools.
Large-Cap Benchmarks
Our sector ETFs are built using the Global Industry Classification Standard (GICS) and benchmarks with a large-cap bias, which contribute to the funds’ overall liquidity.
Trading Capabilities
We draw on our global trading capabilities and capital markets expertise to execute trades as efficiently as possible and work with market makers to pursue best execution for our clients.
Total Cost of Ownership
The liquidity profile of our sector ETFs can help to reduce trading costs which lowers the total cost of ownership—a key consideration in sector rotation strategies.
Reliability Across the Business Cycle
Whether investors are looking to use a top-down, bottom-up or technical approach to portfolio construction, our sector ETFs are designed to deliver the exposures investors need to efficiently target risk and return drivers across all phases of the business cycle.
Thoughtfully Constructed
Our sector ETFs are built using the widely recognized Global Industry Classification Standard (GICS) and are derived from well-known indices.
Expertly Managed
The portfolio management team works diligently to minimize tracking error across all sector investing strategies.
Continuously Evolved
We adapt our suite of sector investing strategies to reflect changes to GICS. For example, in 2018, we worked quickly to launch a communication services sector ETF given the addition of this sector to GICS.
Our Latest Thinking
We deliver differentiated ideas for how to act on opportunities created by sector return dispersion, as well as sectors’ varying correlations to the broader market and to each other.
Sector Compass
Our quarterly Sector Compass provides investors with an overview of recent sector performance and flows, and also features our Sectors Picks for the quarter ahead.
More on Sector & Industry Investing
Our Solutions
Whether you are looking to strengthen your core through strategic sector allocations or tactically capitalise on market opportunities, our sector ETFs are designed to be efficient building blocks for expressing your views. We offer sector ETF investing solutions tracking 30 sectors across MSCI World, MSCI Europe and S&P 500 indices.
1 State Street’s Select Sector ETFs were launched in 1998 and were the first sector ETFs to launch. Largest sector ETF provider is measured by AUM, Bloomberg Finance L.P., as of 9/30/2020.
2 State Street Global Advisors, as of 9/30/2020.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
Concentrated investments in a particular sector or industry tend to be more volatile than the overall market and increases risk that events negatively affecting such sectors or industries could reduce returns, potentially causing the value of the Fund’s shares to decrease.
Passively managed funds invest by sampling the Index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the Index.
Select Sector SPDR Funds bear a higher level of risk than more broadly diversified funds. All ETFs are subject to risk, including the possible loss of principal. Sector ETFs products are also subject to sector risk and nondiversification risk, which generally results in greater price fluctuations than the overall market.
Investing involves risk including the risk of loss of principal.
The information contained in this communication is not a research recommendation or 'investment research' and is classified as a 'Marketing Communication' in accordance with the Markets in Financial Instruments Directive (2014/65/EU) or applicable Swiss regulation. This means that this marketing communication (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research (b) is not subject to any prohibition on dealing ahead of the dissemination of investment research.