Finding Value Opportunities for Passive Fund Investors

Since 2008, the top three sector ETFs for investors globally have been technology, real estate and energy. But where should passsive investors be looking next?

External Writer 18 September, 2017 | 11:21AM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Rebecca Chesworth, SPDR ETF Senior Strategist looks at sector picks offer investors chances for enhanced yield.

As investors continue their search for yield, sector investing has enjoyed a resulting boost. Recent analysis by SPDR, State Street Global Advisor's ETF business, showed that there has been a fivefold increase in global assets of sector exchange traded funds (ETFs) since 2008, reaching $394 billion in assets under management at the end of 2016, with $35 billion inflows last year alone. 

The US experienced the greatest growth, where there was a 548% increase in sector ETF assets with $30 billion in flows last year. However, Europe came a close second with a 487% increase in sector ETF assets and $3 billion in total flows in 2016.

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