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.
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.
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Learn how investors are using sector ETFs to target opportunities created by return dispersion, manage risk through diversification, position for business cycles or express thematic market views.
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.
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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.
3 As measured over the preceding 180 days, Bloomberg Finance L.P., as of 3/31/2020.
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.
KENSHO® is a registered service mark of Kensho Technologies Inc. ("Kensho"), and all Kensho financial indices in the Kensho New Economies® family and such indices' corresponding service marks have been licensed by the Licensee in connection with the SPDR Kensho Intelligent Structures ETF, SPDR Kensho Smart Mobility ETF, SPDR Kensho Future Security ETF, SPDR Kensho Clean Power ETF, SPDR Kensho Final Frontiers ETF and SPDR Kensho New Economies Composite ETF (collectively, the "SPDR ETFs"). The SPDR ETFs are not marketed, sold, or sponsored by Kensho, Kensho’s affiliates, or Kensho's third party licensors.
Kensho is not an investment adviser or broker-dealer and Kensho makes no representation regarding the advisability of investing in any investment fund, other investment vehicle, security or other financial product regardless of whether or not it is based on, derived from, or included as a constituent of any Kensho New Economies© family index. Kensho bears no responsibility or liability for any business decision, input, recommendation, or action taken based on Kensho indices or any products based on, derived from, or included as a constituent of any such index. All referenced names and trademarks are the property of their respective owners.
ALPS Portfolio Solutions Distributor, Inc. member FINRA, is distributor for Select Sector SPDRs. ALPS Portfolio Solutions Distributor, Inc. is not affiliated with State Street Global Advisors Funds Distributors, LLC.