Definition
Sector ETFs track industries like technology, healthcare, utilities, or energy. They can be useful when you want targeted exposure — but concentration means sector-specific shocks hit harder.
They are complements to broad indices, not automatic substitutes.
Why it matters
If you own both SPY and a tech sector ETF, you may be doubling down on similar drivers — check overlap.
How Cognitor helps you research
Cognitor analyzes sector sleeves like XLV, XLU, and SMH with the same multi-layer workflow as broad ETFs.