The stock market can be divided into 11 major sectors representing key areas of the economy. Each sector features many different publicly traded companies sharing the same broad focus. For the investors interesting in further exposure to specific areas of the economy, or attempting a sector-rotation strategy to reposition their portfolio, it may be best to consider ETFs in their preferred sector.

This article presents the 11 sectors of the stock market and the various ETFs that can be used to gain exposure for them.

What are the sectors of the stock market?

1. Energy Sector

The energy sector consists of oil and gas production and exploration companies, in addition to power firms, refineries, and other related operations. These companies mostly generate revenue tied to the price of crude oil, natural gas, and other commodities.

The most popular energy ETFs include:

View a complete list of energy ETFs on our sister site ETF Database.

2. Materials Sector

The material sector consists of mining, refining, forestry, chemical, and other related companies focused on discovering and developing raw materials. As these companies are at the beginning of the supply chain, they are also vulnerable to changes in the business cycle.

The most popular energy ETFs include:

View a complete list of energy ETFs on our sister site ETF Database.

3. Industrials Sector

The industrial sector consists of construction, machinery, fabrication, manufacturing, defense, and aerospace companies. This industry’s growth is driven by demand for building construction and manufactured products such as agricultural equipment.

The most popular industrial ETFs include:

View a complete list of industrial ETFs on our sister site ETF Database.

4. Consumer Discretionary Sector

The consumer discretionary sector consists of retailers, apparel companies, media companies, consumer durables, and consumer service providers. These companies usually benefit from an improving economy based around accelerated consumer spending.

The most popular consumer discretionary ETFs include:

View a complete list of consumer discretionary ETFs on our sister site ETF Database here.

5. Consumer Staples Sector

The consumer staples sector focuses on food and beverage companies, in addition to companies creating products consumers have no desire to cut from their budgets. These companies can general withstand an economic downturn, as they are defensive plays.

The most popular consumer staples ETFs include:

View a complete list of consumer staples ETFs on our sister site ETF Database here.

6. Health Care Sector

The healthcare sector consists of medical device manufacturers, hospital management firms, biotech companies, and many others. This is a growth opportunity and defensive play sector, as people will always require medical aid.

The most popular healthcare ETFs include:

View a complete list of healthcare ETFs on our sister site ETF Database here.

7. Financials Sector

The financial sector consists of banks, insurance companies, real estate firms, and investment funds, among others. A majority of the revenue generated by this sector is generally coming from mortgages and loans gaining value as interest rates rise.

The most popular financial ETFs include:

View a complete list of financial ETFs on our sister site ETF Database here.

Check out ETFdb’s Stock Exposure tool to view and download a list of all ETFs that can provide you with exposure to a specific stock.

8. Information Technology Sector

The information technology sector consists of software developers, electronic manufacturers, and other information technology firms. These businesses are generally driven by upgrade cycles, as well as the general health of the economy, not to mention the growth, which has been robust over the years.

The most popular technology ETFs include:

View a complete list of technology ETFs on our sister site ETF Database here.

9. Telecommunication Services Sector

The telecommunication services sector features cable companies, internet service providers, wireless providers, satellite companies, and many more. Consumers are generally providing recurring revenue for these companies, but some subsets of the industry face rapid change.

The most popular telecom ETFs include:

View a complete list of telecom ETFs on our sister site ETF Database here.

10. Utilities Sector

The utilities sector has a focus on gas, electric, and water companies, in addition to integrated providers. By charging consumers and businesses providing higher-than-average dividend yields, this sector is able to by and large generate a consistent recurring income.

The most popular utilities ETFs include:

View a complete list of utilities ETFs on our sister site ETF Database here.

11. Real Estate Sector

The real estate sector involves companies invested in industrial, residential, and retail real estate. Rent income and real estate capital appreciation make up the main sources of revenue for these companies. The results tend to make this sector sensitive to interest rate changes.

The most popular real estate ETFs include:

View a complete list of real estate ETFs on our sister site ETF Database here.

The Bottom Line

Each of the eleven sectors brings a unique dynamic to the stock market, affecting profitability in various ways. Investors looking to increase exposure to specific sectors can utilize any number of ETFs to achieve their asset allocation goals.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.