These Unique Exchange Traded Funds (ETFs) divide the benchmark S&P 500 into 11 sector-based index funds traded during the day on NYSE Arca. Investors can customize their investment strategy by over weighting or under weighting specific sectors to meet specific investment goals.
The benefits of a Select Sector SPDR ETF include the tracking of an index, the all-day tradability of stocks, the diversification of a mutual fund. With liquidity, transparency, and low costs. Select Sector SPDR ETFs are the eleven sectors of the S&P. Each sector fund can be purchased individually, and each fund provides customers with full undiluted exposure to a particular sector of the S&P 500.
The eleven sectors are Communication Services (XLC), Consumer Staples (XLP), Health Care (XLV), Financials (XLF), Real Estate (XLRE), Energy (XLE), Technology (XLK), Consumer Discretionary (XLY), Industrials (XLI), Materials (XLB), and Utilities (XLU).
Select Sector SPDR ETFs are subject to risks in the same way as stocks regarding margin account maintenance and short selling. ETFs have risks which include the possible loss of principal. In addition, Select Sector SPDR ETFs can be subject to both non-diversified and sector risk. This characteristic can result in greater fluctuations in price than the overall market.
Additional details are available at https://www.sectorspdr.com/
Select Sector SPDR ETFs allow an investor to efficiently invest In the best-known, large cap stocks found in the benchmark S&P 500 index. An investor also can under or overweight sectors based on their investment strategies and goals. Each Select Sector Index is calculated using a modified market capitalization method. The formula ensures that each of the stocks within each sector index fund is represented in a proportion consistent with the percentage of the index's total market cap. Quarterly rebalancing occurs to ensure an individual security doesn't make up more than 25% of the sector. Each Select Sector SPDR ETFs is designed to closely align with the price performance and dividend yield of a particular sector of the S&P 500. Some of the benefits of the ETF include diversification, low expenses, asset allocation, tax efficiency, flexibility, transparency, dividends, and all day tradability.
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.
Release ID: 89083445
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