Concentrating on a sector brings higher risk
Sector ETFs (exchange-traded funds) give you access to a very small part of the overall market, such as energy, real estate, and health care, among others.
Though many of these narrowly focused ETFs have the potential to grow, you should be equally prepared to experience wide swings in the value of your investments—including potentially large losses.
Get exposure to sectors without the additional risk
If you're not comfortable with the increased risk and volatility that sector ETFs present, consider a few funds that provide broad coverage of the major industries.
Whether you're interested in U.S. or non-U.S. stocks, each of these ETFs provides a diversified mix of securities in a single fund.
Vanguard Total Stock Market ETF holds more than 3,500 domestic stocks.
Vanguard Total International Stock ETF
holds more than 6,000 non-U.S. stocks.
Choose a specific sector ETF
If your current portfolio is broadly diversified, you may already have exposure to the sector you're interested in. You should only consider increasing your exposure to narrowly focused sectors if you're comfortable with—and can financially and emotionally afford—the added risk.
Here are just a few of the sector ETFs we offer:
Vanguard Energy ETF
Includes stocks of companies involved in exploring and producing energy products like oil, natural gas, and coal.
Vanguard REIT ETF
Invests in stocks of real estate investment trusts (REITs) and can include companies that purchase office buildings, hotels, and other properties.
Vanguard Health Care ETF
Invests in stocks of companies involved in medical or health care products, services, technology, or equipment.
Ready to choose your sector ETFs?
Or search for a specific sector ETF by name or ticker symbol:
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Diversification can be achieved in many ways, including spreading your investments across:
- Multiple asset classes, by buying a combination of cash, bonds, and stocks.
- Multiple holdings, by buying many bonds and stocks (which you can do through a single ETF) instead of just one or a few.
- Multiple geographic regions, by buying a combination of U.S. and international investments.