Chapter 10

Sector Investing: ETFs According to Industry

In This Chapter

arrow Getting acquainted with major industry sectors

arrow Weighing the pros and cons of sector and style investing

arrow Listing the ETFs that work best for sector investing

arrow Choosing the best options for your portfolio

arrow Knowing which sector funds to avoid

Any Star Trek fan (yeah, beam me up) knows that matter and antimatter, should they ever meet, would result in an explosion so violent as to possibly destroy the entire universe or, at the very least, mess up Donald Trump’s hair. Despite the firm convictions of zealots on both sides, style investing (large/small/growth/value) and sector investing (technology/ utilities/healthcare/energy) are not matter and antimatter. They can, and sometimes do, exist very peacefully side-by-side.

In this chapter, I present the nuts and bolts of sector investing: how it can function alone, or in conjunction with style investing, to provide diversity both on the domestic and international sides ...

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