Sector ETFs: how to invest in a single industry

A sector ETF holds only companies from one industry instead of the whole market. That concentrates both opportunity and risk.

A real example on Alysly – consumer staples (defensive everyday-goods companies):

• Xtrackers MSCI USA Consumer Staples – open it to see the top holdings (Walmart, Costco, Procter & Gamble …) and how few names dominate.

When sectors make sense

• As a satellite around a broad core, not as your whole portfolio.
• Be aware of concentration: a sector ETF can swing far more than a world ETF.
• Check overlap with your core in the ETF comparison.

Information only, not investment advice.