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How to Use Sector ETFs to Express a Macro View

Sectors and Industries • Beginner Investing • 6 min

A sector ETF is an exchange-traded fund holding a basket of stocks concentrated in one specific GICS sector, letting an investor gain exposure to that entire sector's performance with a single trade — a practical way to act on a sector-level or macro view without needing to correctly identify which single company within that sector will perform best. If an investor believes, for example, that rising interest rates…

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