Five new iShares ETFs from BlackRock tracking the performance of US companies in the “S&P 500 Sector” index family are now trading on Xetra and Börse Frankfurt .
The new ETFs and give investors access to the consumer discretionary, energy, financials, healthcare, and IT sectors.
The consumer discretionary sector comprises companies from the automotive, clothing, media and general luxury goods sub-sectors. As consumption of these goods may be limited in economically difficult times, this sector is highly cyclical.
The energy sector consists of companies in integrated oil and gas, oil and gas drilling as well as coal and consumable fuels business.
The financials sector includes companies in the banking, mortgage, asset management and credit business.
The healthcare sector consists of a group of companies in health technology as well as research and development, including pharmaceutical and biotech companies.
The information technology sector encompasses those active in the technology sub-sectors: software and services (internet software and home entertainment), hardware and equipment (communication devices, computers and peripherals) as well as manufacturers of semi-conductors.
‘Smart Beta’ route and built a closet-index strategy that holds 100, 200, or more stocks. However, investors are paying us to take active bets; they are not paying us to deliver what is effectively a Vanguard S&P 500 ETF with a small tilt towards some factor.”