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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
Our scale in sector ETFs has resulted in deep liquidity, tight trading spreads and a robust, efficient market that provides flexibility for investors.
Trading Volume
The average trading volume for our sector ETFs is 17x greater than the next-largest competitor.3
Short Interest and Options Activity
Our sector ETFs have had significant short interest and options activity. This is beneficial for investors regardless of how they use sector ETFs, as it contributes to the depth and liquidity of the market.
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.
Explore Sector ETF Investing
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.
Reliability Across the Business Cycle
Whether investors are looking to use a top-down, bottom-up or technical approach to portfolio construction, our sector, industry and New Economy 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 and industry ETFs are built using the widely recognized Global Industry Classification Standard (GICS) and seek to track Standard & Poor’s indices.
The New Economy ETFs leverage artificial intelligence capabilities to unearth innovative companies across different sectors.
Rigorously Maintained
We continuously monitor our ETFs to ensure that they deliver the exposures investors expect. The portfolio management teams work diligently to minimize tracking error across all sector investing strategies.
Continuously Evolved
We adapt our suite of sector and industry 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 Dashboard
Our quarterly dashboard provides data and insights on recent positioning trends as well as information on each sector’s momentum, valuation and implied volatility to help clients navigate the quarter to come.
More on Sector ETFs
Our Solutions
Whether investors are looking to strengthen their core through strategic allocations or tactically capitalize on market opportunities, we offer a range of ETFs designed to be efficient building blocks for expressing their views.
Sector ETFs
Based on the Global Industry Classification Standard (GICS), these ETFs cover high-level sectors, such as health care, materials and utilities.
Industry ETFs
Slightly more targeted than broad sector exposures, the industry ETFs cover more granular segments of the economy such as health care equipment, homebuilders, and oil & gas exploration & production.
Kensho® New Economy ETFs
These thematic ETFs are designed to target emerging technologies and innovation reshaping the global economy, such as clean power, intelligent infrastructure and smart transportation.
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.
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