• Print
  • Default text size A
  • Larger text size A
  • Largest text size A

An introduction to sector investing

  • Sectors

Overview

In this course you’ll learn about the basics of sector investing. With a better understanding of this type of investment strategy, you can make a well-informed decision on how sector funds may be able to help you achieve a variety of strategic and tactical investment goals.

Objectives

When you complete this course, you will:

  • Know how to navigate Fidelity’s comprehensive sectors and industries research
  • Know the potential benefits and risks of sector investing
  • Determine if sector investments may be right for your portfolio
Course Outline
Title Type Highlight
1. The business cycle and its investing implications Article
There is historic evidence that certain companies in specific sectors show relative outperformance at different times in the business cycle. By understanding how certain companies and sectors react to the business cycle, you may be able to position your portfolio to outperform the rest of the market.
There is historic evidence that certain companies in specific sectors show relative outperformance...
More
2. Why market cap matters Article
Recognizing the relationship between company size, return potential, and risk is essential when selecting investments for your portfolio.
Recognizing the relationship between company size, return potential, and risk is essential when...
More
3. Sector rotation: An introduction Article
In this lesson you'll find a helpful chart that provides a concise summary of which sectors may outperform others; depending on where the economy is in the business cycle.
In this lesson you'll find a helpful chart that provides a concise summary of which sectors may...
More
4. Sector investing with mutual funds and ETFs Article
Both mutual funds and exchange-traded funds offer potential tools for obtaining concentrated exposure to any particular investment sector. Whichever product type you may favor, you should be sure that the fund you select is designed to track the sector as your strategy defines it.
Both mutual funds and exchange-traded funds offer potential tools for obtaining concentrated...
More
5. Industry statistics to consider Article
This lesson will show you where to find data provided by U.S. government agencies and departments that may be useful when conducting sector analysis.
This lesson will show you where to find data provided by U.S. government agencies and departments...
More
6. Researching sectors & industries on Fidelity.com Video
Watch this video to learn how to navigate Fidelity’s comprehensive sectors and industries research using a top down approach from markets to sectors to industries and leverage the integrated expert analysis and commentary to help find investment opportunities.
Watch this video to learn how to navigate Fidelity’s comprehensive sectors and industries research...
More

Because of their narrow focus, investments in one sector tend to be more volatile than investments that diversify across many sectors and companies.
655531.1.0