S&P 500 Sector ETFs
Compare historical returns across all 11 market sectors
What are Sector ETFs?
Sector ETFs allow investors to target specific segments of the economy. The S&P 500 is divided into 11 GICS (Global Industry Classification Standard) sectors, each with its own Select Sector SPDR ETF.
These ETFs are useful for sector rotation strategies, overweighting sectors you're bullish on, or hedging exposure to specific industries. All sector ETFs listed here have expense ratios around 0.10%.
Sector Performance Ranking
1-year total returns, ranked best to worst
Sector Details
CAGR Comparison
Compound Annual Growth Rate by sector
| Sector | 1Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|
| 💻 Technology (XLK) | +33.1% | +16.4% | +21.3% |
| 🏦 Financials (XLF) | -0.8% | +9.3% | +12.4% |
| ⚡ Energy (XLE) | +26.6% | +23.0% | +10.8% |
| 🏥 Healthcare (XLV) | +4.0% | +6.7% | +10.0% |
| 🛍️ Consumer Discretionary (XLY) | +12.9% | +6.5% | +12.0% |
| 🛒 Consumer Staples (XLP) | +6.0% | +7.1% | +7.6% |
| 🏭 Industrials (XLI) | +27.0% | +12.5% | +13.4% |
| 💡 Utilities (XLU) | +21.6% | +11.1% | +10.0% |
| 🧱 Materials (XLB) | +16.1% | +6.5% | +10.3% |
| 🏠 Real Estate (XLRE) | +3.8% | +4.6% | +6.3% |
| 📱 Communication Services (XLC) | +19.8% | +10.4% | - |
Understanding Sector ETFs
The 11 S&P 500 Sectors
- Technology (XLK): Apple, Microsoft, NVIDIA - largest sector by weight
- Financials (XLF): Banks, insurance, asset managers
- Healthcare (XLV): Pharma, biotech, medical devices
- Consumer Discretionary (XLY): Retail, autos, restaurants
- Communication Services (XLC): Meta, Alphabet, telecom
- Industrials (XLI): Aerospace, defense, machinery
- Consumer Staples (XLP): Food, beverages, household products
- Energy (XLE): Oil & gas, energy equipment
- Utilities (XLU): Electric, gas, water utilities
- Real Estate (XLRE): REITs and real estate services
- Materials (XLB): Chemicals, metals, packaging
Sector Rotation Strategy
Different sectors tend to outperform at different stages of the economic cycle. Cyclical sectors like Technology and Consumer Discretionary often lead during expansions, while defensive sectors like Utilities and Consumer Staples may outperform during recessions.