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.
VTI
Vanguard Total Stock Market ETF
Vanguard Total Stock Market ETF holds more than 3,500 domestic stocks.
VXUS
Vanguard Total International Stock ETF
Vanguard Total International Stock ETF holds more than 6,000 non-U.S. stocks.
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?
Browse a list of all Vanguard sector ETFs
Or search for a specific sector ETF:
Already own Vanguard ETFs somewhere else?
Transfer them to a Vanguard Brokerage Account so you can enjoy commission-free trades.
Already own Vanguard ETFs somewhere else?
Transfer them to a Vanguard Brokerage Account so you can enjoy commission-free trades online.
For more information about Vanguard mutual funds and ETFs, visit Vanguard mutual fund prospectuses or Vanguard ETF prospectuses to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
You must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services (we offer them commission-free online) or through another broker (who may charge commissions). See the Vanguard Brokerage Services Commission and Fee Schedules for limits. Vanguard ETF Shares are not redeemable directly with the issuing Fund other than in very large aggregations worth millions of dollars. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or receive the current market price, which may be more or less than net asset value.
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility. Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk, which is the chance that political upheaval, financial troubles, or natural disasters will adversely affect the value of securities issued by companies in foreign countries or regions; and currency risk, which is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates.