Get Fidelity’s perspective and expertise on sector investing strategies.
Exchange-traded funds (ETFs) can be powerful investing vehicles. They trade intraday like stocks. Yet, like mutual funds, they are baskets of investments (e.g., stock ETFs hold a basket of stocks) representing the entire market or specific segments of it.
U.S. stocks started the year with a giant thud, as the Dow and S&P 500 ended January with the worst performance since 2009. Disappointing economic reports from China and a fresh drop in oil prices once again raised questions about growth prospects globally and sent stocks reeling.
Since late 2013, oil prices have dropped more in dollar amounts than at any point in history—with the price of crude falling nearly 70% and dipping below $30 per barrel in January. Meanwhile, stocks in the energy sector have largely followed the commodity price down, with some selling at valuation levels not seen in decades.
Stocks got off to their worst start since the Great Depression: The S&P 500 lost 7%, as of January 26, after finishing marginally in the green during 2015. As bulls and bears battle for control of the market, it may now be more important to be selective in your investment decision making than at any point during the nearly seven year rally.
Past performance is no guarantee of future results.
Find out why sector exposure matters and how sectors can help boost performance.
A look inside sectors
Get the latest sector news and insights to better manage your portfolio.