Tag: Sector indices

Investors seeking diversified exposure might gravitate towards broad market indices, while those with a keen interest in specific economic sectors might prefer sector indices. Over time, the performance of sector-specific indices compared to broad market indices shines a light on the shifting dynamics of the investment landscape. This article examines these two approaches and their long-term performance outcomes. Understanding Sector Indices Sector indices track the performance of specific industries such as technology, healthcare, or finance. For example, the Technology Select Sector SPDR Fund (XLK) represents technology sector stocks from the S&P...