Use Sector ETFs to Better Control Your Market Exposure

For instance, the Utilities Select Sector SPDR (NYSEArca: XLU), the largest utilities sector ETF, has been a good way to access the steady, dividend-paying utilities players in the S&P 500.

As the markets turn and churn, some areas will inevitably do better than others, and the varying performances will be reflected in the various sector ETF plays.

“When you look at interest rates – the focus of the last couple of years, what happens when rates go higher, when they go lower, the mood swings a little bit,” Dolan said. “So changes within the environment; there is always something different in the sector world.”

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