Parse through the top asset-gathering, equity-based exchange-traded funds for a particular year, and it is unlikely that multiple sector funds appear, but that anecdote belies the rising popularity of sector ETFs.
Sector ETFs have gained popularity among advisors and investors looking for more concentrated, tactical ways to gain long equity exposure. Additionally, a growing number of ETF strategists that employ sector rotation strategies have bolstered sector ETFs' popularity.
“Sector investing through sector-tracking ETFs has surged in popularity in the last few years as investors seek a more focused alternative the broad brush investment approaches of passive index tracking while maintaining a level of easily available diversification that has made ETFs so popular. US sector ETFs, which manage around 90 percent of all sector based ETF assets, saw their AUM base surge to a record $277 billion at the end of last year. This represents a doubling of the asset base managed by the roughly 300 such funds since the end of 2011,” said Markit in a new ...
/www.benzinga.com/trading-ideas/long-ideas/16/02/6218725/sector-rotation-strategies-boost-popularity-of-sector-etfs alt=Sector Rotation Strategies Boost Popularity Of Sector ETFs>Full story available on Benzinga.com
More...