{"format":"alysly-page/1","url":"https://alysly.com/learn/sector-etfs/","json":"https://alysly.com/json/learn/sector-etfs/index.json","lang":"en-US","title":"Sector ETFs: A Single Industry in One Fund – Alysly","description":"Sector ETFs bundle one industry – like consumer staples. What that means for diversification and volatility, with a live example.","published":"2026-07-13T11:24:42+02:00","modified":"2026-11-01T18:26:04+01:00","alternates":[{"lang":"de-DE","url":"https://alysly.com/de/lernen/branchen-etfs/","json":"https://alysly.com/json/de/lernen/branchen-etfs/index.json"}],"about":"Machine-readable version of the page at url. It contains the text, tables and key figures published there, but not the interactive charts and tools.","breadcrumb":[{"name":"Investing & Trading Basics","url":"https://alysly.com/learn/"},{"name":"Level 0","url":"https://alysly.com/learn/#level-0"},{"name":"Sector ETFs: A Single Industry in One Fund","url":"https://alysly.com/learn/sector-etfs/"}],"content":[{"type":"paragraph","text":"Level 0 Investing & ETF Basics · Part 11/16"},{"type":"heading","level":1,"text":"Sector ETFs: A Single Industry in One Fund"},{"type":"paragraph","text":"By Alexander Bock, founder and data analyst","links":[{"text":"Alexander Bock","href":"https://alysly.com/about/"}]},{"type":"paragraph","text":"A sector ETF holds only companies from one industry instead of the whole market. The opportunities and risks of that industry pass through to the fund unfiltered."},{"type":"image","src":"https://alysly.com/img/ta/sector-weights.b4047f7873bc740a84f6b76a210da4f83262df776362995583cab5b9959a473c.webp","alt":"Bars of sector weights in the MSCI World, next to a single bar for a sector ETF with 100 percent in one sector"},{"type":"paragraph","text":"On the left, sector weights from the holdings list of an MSCI World ETF (iShares Core MSCI World, as of September 15, 2026): (1) IT 29.9%, (2) financials 16.5%, (3) industrials 10.9%, (4) health care 9.2%, (5) consumer discretionary 8.6%, (6) communication services 8.4%, then the other five sectors combined 16.4%. On the right, (7) a sector ETF: 100% in a single sector."},{"type":"paragraph","text":"An example on Alysly is consumer staples (makers and sellers of everyday goods):"},{"type":"list","ordered":false,"items":[{"text":"Xtrackers MSCI USA Consumer Staples: the top holdings (Walmart, Costco, Procter & Gamble …) show how few names shape such a fund.","links":[{"text":"Xtrackers MSCI USA Consumer Staples","href":"https://alysly.com/markets/etfs/xtrackers-msci-usa-consumer-staples-ucits-etf-1d/"}]}]},{"type":"heading","level":2,"id":"in-context","text":"In Context"},{"type":"list","ordered":false,"items":["In portfolios, sector ETFs usually serve as an addition to a broad core, rarely as the whole portfolio.",{"text":"Concentration in one industry often means considerably larger swings than a world ETF.","links":[{"text":"world ETF","href":"https://alysly.com/markets/etfs/"}]},{"text":"Large sector names are usually already in the broad index; the ETF comparison shows how much two funds overlap.","links":[{"text":"ETF comparison","href":"https://alysly.com/markets/etfs/compare/"}]}]},{"type":"heading","level":2,"id":"how-sectors-are-defined","text":"How Sectors Are Defined"},{"type":"paragraph","text":"Most sector ETFs follow the Global Industry Classification Standard (GICS) from MSCI and S&P Dow Jones Indices. It sorts companies into eleven sectors, from information technology through health care and financials to utilities and real estate. Each company belongs to exactly one sector. The assignment can change: in 2018, for example, Alphabet and Meta (then Facebook) moved from information technology to the new communication services sector."},{"type":"heading","level":2,"id":"why-sector-indices-are-often-capped","text":"Why Sector Indices Are Often Capped"},{"type":"paragraph","text":"In some sectors, a few companies make up most of the market value. European retail funds (UCITS), however, must follow diversification rules. An index fund may generally hold at most 20% in a single issuer, 35% in exceptional cases. Sector ETFs therefore often track a capped index version in which the weights of the largest stocks are limited. The fund then looks different from the uncapped sector that index providers show in their charts."},{"type":"heading","level":2,"id":"cyclical-and-defensive","text":"Cyclical and Defensive"},{"type":"paragraph","text":"Sectors react differently to the business cycle. Industrials, materials and consumer discretionary count as cyclical; their sales rise and fall with the economy. Consumer staples, health care and utilities count as defensive, since demand for them swings less in downturns. The sector pages show how the sectors of the US stock market are made up.","links":[{"text":"sector pages","href":"https://alysly.com/markets/stocks/by-sector/"}]},{"type":"paragraph","text":"Information only, not investment advice."},{"type":"list","ordered":false,"items":[{"text":"Previous MSCI World Criticism: How Big Is the US Concentration?","href":"https://alysly.com/learn/msci-world-criticism/"},{"text":"Next Dividend ETFs: Payouts and Required Capital","href":"https://alysly.com/learn/dividend-etfs/"}]},{"type":"heading","level":2,"text":"Indices"},{"type":"table","caption":"Indices, performance over the selected period","columns":["Index","1M"],"rows":[[{"text":"Dow Jones","href":"https://alysly.com/markets/indices/dow-jones/"},{"text":"+1.7%","data":{"m1":"+1.7%","m3":"-1.4%","m6":"+4.5%","ytd":"+7.6%","max":"+30.1%"}}],[{"text":"S&P 500","href":"https://alysly.com/markets/indices/sp500/"},{"text":"-0.9%","data":{"m1":"-0.9%","m3":"+1.2%","m6":"+4.9%","ytd":"+10.8%","max":"+35.8%"}}],[{"text":"MSCI World","href":"https://alysly.com/markets/indices/msci-world/"},{"text":"-0.8%","data":{"m1":"-0.8%","m3":"+0.6%","m6":"+4.0%","ytd":"+10.2%","max":"+35.3%"}}],[{"text":"MSCI ACWI","href":"https://alysly.com/markets/indices/msci-acwi/"},{"text":"-1.7%","data":{"m1":"-1.7%","m3":"-0.2%","m6":"+2.9%","ytd":"+10.3%","max":"+41.7%"}}]]},{"type":"heading","level":2,"text":"ETFs"},{"type":"table","caption":"ETFs, performance over the selected period","columns":["Fund","1M"],"rows":[[{"text":"SPDR S&P 500 ETF Trust SPY","links":[{"text":"SPDR S&P 500 ETF Trust","href":"https://alysly.com/markets/etfs/us/spy/"}]},{"text":"-0.9%","data":{"m1":"-0.9%","m3":"+1.2%","m6":"+4.9%","ytd":"+10.8%","max":"+35.8%"}}],[{"text":"Vanguard S&P 500 ETF VOO","links":[{"text":"Vanguard S&P 500 ETF","href":"https://alysly.com/markets/etfs/us/voo/"}]},{"text":"-0.9%","data":{"m1":"-0.9%","m3":"+1.2%","m6":"+4.9%","ytd":"+10.8%","max":"+34.3%"}}],[{"text":"iShares Core MSCI World UCITS ETF USD (Acc) EUNL","links":[{"text":"iShares Core MSCI World UCITS ETF USD (Acc)","href":"https://alysly.com/markets/etfs/ishares-core-msci-world-ucits-etf-usd-acc/"}]},{"text":"-0.8%","data":{"m1":"-0.8%","m3":"+0.6%","m6":"+4.6%","ytd":"+10.9%","max":"+489.0%"}}],[{"text":"Xtrackers MSCI Emerging Markets UCITS ETF 1c XMME","links":[{"text":"Xtrackers MSCI Emerging Markets UCITS ETF 1c","href":"https://alysly.com/markets/etfs/xtrackers-msci-emerging-markets-ucits-etf-1c/"}]},{"text":"-6.3%","data":{"m1":"-6.3%","m3":"+2.4%","m6":"+0.7%","ytd":"+15.2%","max":"+95.2%"}}]]},{"type":"heading","level":2,"text":"Stocks"},{"type":"table","caption":"Stocks, performance over the selected period","columns":["Stock","1M"],"rows":[[{"text":"NVIDIA Corporation NVDA","links":[{"text":"NVIDIA Corporation","href":"https://alysly.com/markets/stocks/nvidia-corporation/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"-10.4%","data":{"m1":"-10.4%","m3":"+1.9%","m6":"+3.1%","ytd":"+9.7%","max":"+60.6%"}}],[{"text":"Apple Inc. AAPL","links":[{"text":"Apple Inc.","href":"https://alysly.com/markets/stocks/apple-inc/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"+3.5%","data":{"m1":"+3.5%","m3":"+11.6%","m6":"+23.0%","ytd":"+26.8%","max":"+51.4%"}}],[{"text":"Tesla Inc. TSLA","links":[{"text":"Tesla Inc.","href":"https://alysly.com/markets/stocks/tesla-inc/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"+12.7%","data":{"m1":"+12.7%","m3":"+28.5%","m6":"+2.3%","ytd":"-11.1%","max":"+65.9%"}}]]},{"type":"paragraph","text":"Data note 1","href":"#dn-1"},{"type":"heading","level":2,"text":"More Studies"},{"type":"list","ordered":false,"items":[{"text":"Jul 21, 2026 Collectibles ×5.4 for the same cards, matched-model index, Mar 2022 – Aug 2026 Is the Pokémon Card Market in a Bubble? 4,159 Sales Analyzed Prices for PSA-graded cards multiplied. Measured on the same cards they rose 438%, while the raw median shows 786% because pricier cards came up for sale later.","href":"https://alysly.com/analysis/pokemon-card-market-bubble/"},{"text":"May 19, 2026 Crypto 45.6% Bitcoin’s annualized volatility, Jul 2024 – Sep 2026 Bitcoin in Investment Portfolios: The Real Numbers Bitcoin is calmer than it was and still about three times as volatile as the stock market. It moves with stocks, not with gold.","href":"https://alysly.com/analysis/bitcoin-investment-portfolios/"},{"text":"Mar 17, 2026 Wealth €1.2m needed for €3,000 a month indefinitely at a 3% real return Living Off Your Returns: What It Really Takes The capital you need is arithmetic. The return you assume is a guess, and it can triple the answer.","href":"https://alysly.com/analysis/living-off-returns/"}]},{"type":"paragraph","text":"View all studies","href":"https://alysly.com/analysis/#studies"},{"type":"heading","level":2,"text":"Learn"},{"type":"list","ordered":false,"items":[{"text":"Dividend ETFs: Payouts and Required Capital How distributing ETFs generate regular payments, where the payout comes from and how large a portfolio must be for a given amount.","href":"https://alysly.com/learn/dividend-etfs/"},{"text":"Factor ETFs: Value, Quality, Growth & Small Cap Beyond the plain MSCI World: what value, quality, growth and small-cap factor ETFs actually hold, with live holdings.","href":"https://alysly.com/learn/factor-etfs/"}]},{"type":"paragraph","text":"Course overview","href":"https://alysly.com/learn/"},{"type":"paragraph","text":"Updated Nov 1, 2026 · Content and figures checked Nov 1, 2026"},{"type":"heading","level":2,"id":"note-legend-h","text":"Data Notes"},{"type":"paragraph","text":"All calculations run automatically and are not investment advice."},{"type":"list","ordered":true,"items":[{"id":"dn-1","text":"Returns computed automatically from the price series, excluding dividends, taxes and costs."}]},{"type":"paragraph","text":"Data and methodology: Alysly · Responsible for content: Alexander Bock","links":[{"text":"Alysly","href":"https://alysly.com/methodology/"},{"text":"Alexander Bock","href":"https://alysly.com/about/"}]},{"type":"paragraph","text":"View all data notes","href":"https://alysly.com/notes/"}],"structured_data":[{"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://alysly.com/#org","name":"Alysly","url":"https://alysly.com/","logo":{"@type":"ImageObject","url":"https://alysly.com/img/icon-512.png","width":512,"height":512},"description":"Data-driven insights, transparent analysis and powerful tools for long-term investors.","email":"mail@alysly.com","contactPoint":{"@type":"ContactPoint","contactType":"customer support","email":"mail@alysly.com","availableLanguage":["de","en"]},"address":{"@type":"PostalAddress","addressLocality":"Haltern am See","postalCode":"45721","addressCountry":"DE"},"founder":{"@id":"https://alysly.com/#founder"},"sameAs":["https://www.linkedin.com/company/alyslycom/","https://www.youtube.com/@alyslycom","https://x.com/alyslycom"],"publishingPrinciples":"https://alysly.com/methodology/"},{"@type":"Person","@id":"https://alysly.com/#founder","name":"Alexander Bock","jobTitle":"Founder and data analyst","url":"https://alysly.com/about/","sameAs":["https://www.linkedin.com/in/abxk/"]},{"@type":"WebSite","@id":"https://alysly.com/#site","url":"https://alysly.com/","name":"Alysly","alternateName":"Alysly Investment Analysis","inLanguage":"en-US","publisher":{"@id":"https://alysly.com/#org"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://alysly.com/markets/stocks/browse/?q={search_term_string}"},"query-input":"required name=search_term_string"}},{"@type":"WebPage","@id":"https://alysly.com/learn/sector-etfs/#webpage","url":"https://alysly.com/learn/sector-etfs/","name":"Sector ETFs: A Single Industry in One Fund – Alysly","description":"Sector ETFs bundle one industry – like consumer staples. 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