Investing Ideas
The case for using a sector based framework in equity portfolio construction
Sector exposure has been a major driver of stock returns and can be an effective way to seek an objective and manage portfolio risk.
Key Takeaways
- Using a sector-based framework to build equity portfolios can help investors achieve a variety of investment objectives and manage portfolio risk.
- Beyond company-specific factors, sector exposure has been the most influential driver of the variability in equity market returns over time, yet sector-based portfolio construction remains an underutilized strategy in the marketplace.
- Equity sectors have a variety of attributes, including stable classification, consistent earnings drivers, high return dispersion, clear volatility patterns, and low correlations, which together can help investors generate an efficient portfolio.
Get the full white paper
The case for using a sector-based framework in equity portfolio construction
Next steps to consider
Investment & Retirement Products
Meet the unique financial needs of your clients with our diverse investment and retirement offerings.
Learn more
Fidelity Portfolio Quick Check®
Analyze, compare, and optimize your investment strategy in minutes with our free on-demand digital portfolio analysis tool.
Learn more
1136392.2
9E102CE0479447589147A1A295F0263D