Select Sector SPDR ETFs Can Provide Added Index Portfolio Precision
Denver, CO
|
July 24, 2023 05:00 AM Eastern Daylight Time
Index investing is renowned for its simplicity and transparency, yet achieving targeted market segment exposure can prove complex.
That's where the Select Sector SPDR ETFs come into play. This suite of 11 sector ETFs provides a potential solution, offering flexibility, diversification, and added precision to your portfolio. Unique in their approach, Sector SPDR ETFs are the only ETFs that carve the S&P 500 into 11 investable pieces which conveniently, efficiently and affordably provide sector exposure while giving you the ability to customize the S&P 500 to meet a specific investment objective.
The Select Sector SPDR ETFs can simplify sector investing, offering advisors and investors an easy way to access market segments. The funds also come with an investor-friendly expense ratio of 0.10%*.
The Sector SPDR ETFs are**:
Communication Services Select Sector SPDR (XLC), over $13B in assets under management (AUM)
Consumer Discretionary Select Sector SPDR (XLY), over $17B in AUM
Consumer Staples Select Sector SPDR (XLP), over $17B in AUM
Energy Select Sector SPDR (XLE), over $33B in AUM
Financials Select Sector SPDR (XLF) over $32B in AUM
Health Care Select Sector SPDR (XLV) over $41B in AUM
Industrials Select Sector SPDR (XLI), over $14B in AUM
Materials Select Sector SPDR (XLB), over $5B in AUM
Real Estate Select Sector SPDR (XLRE), over $4B in AUM
Technology Select Sector SPDR (XLK), over $49B in AUM
Utilities Select Sector SPDR (XLU), over $15B in AUM.
Another Level of Index Investing
Index-based sector investing takes the concept of investing in the broad market to a finer level, allowing advisors and investors to employ sectors in a strategic or tactical approach, or as long-term portfolio sleeves.
By investing in a single Sector SPDR ETF, you can gain exposure to a diversified portfolio of sector specific stocks. This can help reduce the risk of investing in individual stocks. The holdings of these ETFs are disclosed on a daily basis, which allows investors to know exactly what they are investing in.
Unlike mutual funds, SPDR ETFs can be bought and sold on NYSE Arca throughout the day, which provides investors with the ability to enter and exit positions quickly.
Bottom Line
Investing in Sector SPDR ETFs can offer several benefits, but it is important to understand the potential risks as well. As always, investors should do their research and consider their investment goals, risk tolerance and time horizon before investing.
DISCLAIMER: This is a work of research and should not be taken as investment or financial advice. Therefore, Select Sector SPDRs or the publisher is not liable for any decision made based on the publication.
About the Company:
Select Sector SPDR ETFs offer flexibility and customization opportunities. Many investors have similar outlooks, but no two are exactly alike. Select Sector SPDR ETFs let investors select the sectors that best meet their investment goals.
* Ordinary brokerage fees apply
* Assets as of 6/30/23 subject to change
DISCLOSURES
The S&P 500 Index is an unmanaged index of 500 common stocks that is generally considered representative of the U.S. stock market. The index is heavily weighted toward stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The S&P 500 Index figures do not reflect any fees, expenses or taxes. An investor should consider investment objectives, risks, fees and expenses before investing.
One may not invest directly in an index.
Transparent ETFs provide daily disclosure of portfolio holdings and weightings
All ETFs are subject to risk, including loss of principal. Sector ETF products are also subject to sector risk and nondiversification risk, which generally will result in greater price fluctuations than the overall market. Diversification does not eliminate risk.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1-866-SECTOR-ETF (732-8673) or visit www.sectorspdrs.com. Read the prospectus carefully before investing.
ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is distributor for the Select Sector SPDR Trust.
Media Contact:
Company: Select Sector SPDRs
Contact: Dan Dolan*
Address: 1290 Broadway, Suite 1000, Denver, CO 80203
Country: United States
Email: dan.dolan@sectorspdrs.com
Website: https://www.sectorspdrs.com/
*Dan Dolan is a Registered Representative of ALPS Portfolio Solutions Distributor, Inc. ALPS Portfolio Solutions Distributor, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.
SEL006740 EXP 9/30/23
Contact Details
Dan Dolan
Company Website
