It is advised that the investors investing in Exchange-Traded Funds use a combination of sectors to invest in the market. The idea behind this ideology is to minimize the risk as your investment is scattered over different sectors. When the economy is doing well, companies manufacturing autos, high technology, luxurious items, tend to do well & their stocks too.
However, when the economy looks like it’s sputtering and entering a recession, then it pays to switch to defensive stocks tied to human needs, such as food and beverage (in the consumer staples sector), utilities, and the like.
So it is always suggested to rotate your ETF's in the different investment sectors.
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