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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
A group of related companies, like technology, healthcare, or energy.
Why It Matters
Different sectors perform differently in different economic conditions. Technology leads during growth periods; utilities and healthcare are 'defensive' during downturns. Understanding sectors helps you diversify and position your portfolio for economic cycles. The S&P 500 has 11 sectors, each with its own ETF (XLK for tech, XLF for financials, etc.).
Key Points
- The 11 GICS sectors: Technology, Healthcare, Financials, Consumer Discretionary, Consumer Staples, Energy, Industrials, Materials, Utilities, Real Estate, Communication Services
- Sector rotation: Moving money between sectors based on economic cycle expectations
- Sector ETFs let you invest in entire industries without picking individual stocks
Related Terms
Common Questions
A group of related companies, like technology, healthcare, or energy. Different sectors perform differently in different economic conditions. Technology leads during growth periods; utilities and healthcare are 'defensive' during downturns.
Different sectors perform differently in different economic conditions. Technology leads during growth periods; utilities and healthcare are 'defensive' during downturns. Understanding sectors helps you diversify and position your portfolio for economic cycles. The S&P 500 has 11 sectors, each with its own ETF (XLK for tech, XLF for financials, etc.).
The 11 GICS sectors: Technology, Healthcare, Financials, Consumer Discretionary, Consumer Staples, Energy, Industrials, Materials, Utilities, Real Estate, Communication Services
Sector rotation: Moving money between sectors based on economic cycle expectations
Sector ETFs let you invest in entire industries without picking individual stocks