Sector ETF Allocation | Technology, Healthcare, Financials and REITs

Sector ETFs focus on industries such as technology, healthcare, financials, energy, REITs, or consumer staples. They can express a view on a specific industry, but excessive sector concentration increases risk.

The practical rule is to keep broad index ETFs as the core and use sector ETFs as satellites.

1. Sector Roles

2. Allocation

Sector ETFs are easier to manage within 10~30% of the total portfolio. If you already hold Nasdaq 100, adding a technology ETF can create heavy overlap.

3. Rebalancing

Check sector weights quarterly or twice a year. If a sector grows more than 5 percentage points above target, consider trimming.

4. FAQ

Can I build a portfolio only with sector ETFs?

You can, but overlap and timing risk are harder to manage.

Does Nasdaq 100 overlap with technology ETFs?

Often yes. Compare top holdings before adding both.

Which sectors are defensive?

Healthcare and consumer staples can be defensive, but they are not guaranteed to rise in every downturn.