Index Investing
Sector Index
Definition
What is Sector Index?
An index trackingThe process of building a portfolio intended to follow an index's return. companies in one economic sector.
Example in practice
How This Looks in Practice
The banking index rises after strong industryA more specific group of companies with closely related products or services. earnings.
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Related Terms
Index Investing
Index
A statistical measure tracking the performance of a defined group of securities or assets.
Index InvestingMarket Index
An index designed to measure a market or market segment.
Index InvestingBroad-Market Index
An index covering a large portion of an investable market.
Factor InvestingFactor Investing
An approach targeting broad, persistent return drivers such as value, size, momentum, quality, or low volatility.