What are Select Sector SPDR funds?

Fernandes

For investors, what exactly are Select Sector SPDR funds? When considering these funds, is high portfolio turnover a characteristic to anticipate in any particular sector ETF within this group?

Kaile

Select Sector SPDRs are ETFs that let investors focus on some specific S&P 500 industries. Investors often expect high trading activity and turnover in fast-paced sectors like technology and healthcare. And this is because of rapid growth or changes in these sectors, unlike more stable areas. It's always advisable to check each fund's investment goals.

Fernandes

@Kaile said in What are Select Sector SPDR funds?:

Select Sector SPDRs are ETFs that let investors focus on some specific S&P 500 industries. Investors often expect high trading activity and turnover in fast-paced sectors like technology and healthcare. And this is because of rapid growth or changes in these sectors, unlike more stable areas. It's always advisable to check each fund's investment goals.

So, if you’re seeing a lot of turnover in tech and healthcare SPDRs, it means things are changing quickly in those fields. But does that also mean there is more risk and possibly higher costs compared to sticking with sectors that don’t change as much?