Best Sector ETFs (2026)
Which sector funds are worth holding, and how the sectors compare — 104 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.
Updated October 23, 2026
Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.
Top Picks Right Now
#1
XLE
State Street Energy Select Sector SPDR ETF
B+
81.2/100
- best risk-adjusted return (Sharpe 2.60)
#2
VDE
Vanguard Energy Index Fund ETF Shares
B+
78.0/100
- scores 78.0 on the overall model (grade B+)
#3
XLV
State Street Health Care Select Sector SPDR ETF
B+
77.7/100
- scores 77.7 on the overall model (grade B+)
Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.
At a Glance
Each superlative is measured within this group of 104 funds, not across the whole market.
All 104 Funds Ranked
| Fund | Category | Cost | Yield | 1Y | 3Y | Volatility | Max DD | Sharpe | AUM | Score | Grade |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 XLEState Street Energy Select Sector SPDR ETF | Energy | 0.08% | 2.20% | +62.4% | +79.5% | 22.1% | -20.1% | 2.60 | $39.1B | 81.2 | B+ |
| 2 VDEVanguard Energy Index Fund ETF Shares | Energy | 0.09% | 2.11% | +60.2% | +76.8% | 22.0% | -21.4% | 2.51 | $12.7B | 78.0 | B+ |
| 3 XLVState Street Health Care Select Sector SPDR ETF | Healthcare | 0.08% | 1.42% | +24.9% | +52.2% | 16.3% | -17.1% | 1.22 | $43.4B | 77.7 | B+ |
| 4 XLKState Street Technology Select Sector SPDR ETF | Technology | 0.08% | 0.46% | +29.0% | +129.3% | 26.7% | -25.7% | 0.90 | $127.3B | 77.5 | B+ |
| 5 VHTVanguard Health Care Index Fund ETF Shares | Healthcare | 0.09% | 1.39% | +24.2% | +55.2% | 15.7% | -16.9% | 1.22 | $21.8B | 77.1 | B+ |
| 6 MLPXGlobal X MLP & Energy Infrastructure ETF | Energy | 0.45% | 3.13% | +30.5% | +104.3% | 17.0% | -16.8% | 1.50 | $3.4B | 77.1 | B+ |
| 7 VGTVanguard Information Technology Index Fund ETF Shares | Technology | 0.09% | 0.40% | +27.3% | +139.3% | 25.0% | -27.2% | 0.89 | $177.9B | 76.6 | B+ |
| 8 SMHVanEck Semiconductor ETF | Technology | 0.35% | 0.21% | +56.2% | +287.4% | 40.0% | -35.7% | 1.28 | $74.9B | 75.2 | B+ |
| 9 FENYFidelity MSCI Energy Index ETF | Energy | 0.08% | 2.07% | +60.4% | +76.8% | 21.9% | -21.5% | 2.52 | $2.1B | 75.2 | B |
| 10 SOXXiShares Semiconductor ETF | Technology | 0.33% | 0.26% | +68.7% | +232.7% | 46.4% | -41.4% | 1.37 | $48.4B | 74.7 | B+ |
| 11 FTECFidelity MSCI Information Technology Index ETF | Technology | 0.08% | 0.39% | +27.5% | +139.8% | 25.1% | -27.3% | 0.90 | $22.1B | 74.3 | B |
| 12 FHLCFidelity MSCI Health Care Index ETF | Healthcare | 0.08% | 1.18% | +24.4% | +55.2% | 15.8% | -16.9% | 1.23 | $3.5B | 74.3 | B |
| 13 CIBRFirst Trust NASDAQ Cybersecurity ETF | Technology | 0.58% | 0.37% | +39.5% | +145.2% | 29.8% | -22.0% | 1.16 | $17.3B | 72.8 | B |
| 14 IYEiShares U.S. Energy ETF | Energy | 0.37% | 1.85% | +60.0% | +76.9% | 21.6% | -20.4% | 2.55 | $1.6B | 72.6 | B |
| 15 IYWiShares U.S. Technology ETF | Technology | 0.37% | 0.10% | +26.6% | +144.3% | 24.5% | -26.5% | 0.88 | $26.5B | 71.8 | B |
| 16 IBBiShares Biotechnology ETF | Healthcare | 0.44% | 0.16% | +35.2% | +85.1% | 22.7% | -24.9% | 1.33 | $11.2B | 71.4 | B |
| 17 SOXQInvesco PHLX Semiconductor ETF | Technology | 0.19% | 0.35% | +61.8% | +244.2% | 45.3% | -39.4% | 1.25 | $3.2B | 71.3 | B |
| 18 HACKAmplify Cybersecurity ETF | Technology | 0.60% | 0.13% | +47.9% | +155.8% | 32.2% | -21.9% | 1.33 | $3.3B | 71.2 | B |
| 19 AMLPAlerian MLP ETF | Energy | 1.01% | 7.66% | +23.4% | +61.8% | 12.7% | -14.3% | 1.45 | $12.6B | 71.2 | B |
| 20 XBIState Street SPDR S&P Biotech ETF | Healthcare | 0.35% | 0.39% | +39.9% | +130.8% | 29.0% | -33.0% | 1.20 | $10.4B | 71.0 | B |
| 21 IYZiShares U.S. Telecommunications ETF | Communication Services | 0.37% | 1.75% | +21.3% | +101.2% | 21.5% | -15.8% | 0.76 | $1.1B | 70.0 | B |
| 22 IYHiShares U.S. Healthcare ETF | Healthcare | 0.37% | 1.06% | +24.2% | +51.1% | 16.3% | -17.9% | 1.18 | $4.0B | 69.7 | B |
| 23 XLPState Street Consumer Staples Select Sector SPDR ETF | Consumer Staples | 0.08% | 2.49% | +13.7% | +41.6% | 15.2% | -9.7% | 0.57 | $13.4B | 69.4 | B |
| 24 PPHVanEck Pharmaceutical ETF | Healthcare | 0.36% | 4.94% | +27.0% | +62.1% | 18.4% | -18.1% | 1.20 | $1.0B | 68.7 | B |
| 25 IGMiShares Expanded Tech Sector ETF | Technology | 0.37% | 0.14% | +23.5% | +156.4% | 25.2% | -26.4% | 0.73 | $11.4B | 68.2 | B |
| 26 XLFState Street Financial Select Sector SPDR ETF | Financial | 0.08% | 1.48% | +8.3% | +83.0% | 14.5% | -15.5% | 0.23 | $51.0B | 68.1 | B |
| 27 IAKiShares U.S. Insurance ETF | Financial | 0.37% | 2.43% | +17.5% | +67.3% | 16.0% | -11.6% | 0.78 | $420M | 67.8 | B |
| 28 VDCVanguard Consumer Staples Index Fund ETF Shares | Consumer Staples | 0.09% | 2.04% | +12.3% | +43.5% | 14.7% | -9.4% | 0.50 | $8.7B | 67.4 | B |
| 29 KBWBInvesco KBW Bank ETF | Financial | 0.35% | 2.13% | +19.2% | +152.4% | 19.9% | -25.4% | 0.71 | $6.2B | 67.2 | B |
| 30 KREState Street SPDR S&P Regional Banking ETF | Financial | 0.35% | 2.22% | +22.7% | +99.2% | 20.4% | -28.2% | 0.87 | $3.7B | 66.6 | C |
| 31 PSIInvesco Semiconductors ETF | Technology | 0.55% | 0.04% | +63.9% | +214.6% | 53.6% | -41.1% | 1.10 | $2.9B | 66.3 | B |
| 32 IEOiShares U.S. Oil & Gas Exploration & Production ETF | Energy | 0.37% | 1.45% | +74.5% | +69.6% | 26.9% | -31.5% | 2.59 | $732M | 66.2 | C |
| 33 XPHState Street SPDR S&P Pharmaceuticals ETF | Healthcare | 0.35% | 0.44% | +29.8% | +82.5% | 23.5% | -23.6% | 1.06 | $524M | 66.0 | B |
| 34 XOPState Street SPDR S&P Oil & Gas Exploration & Production ETF | Energy | 0.35% | 1.55% | +64.8% | +50.8% | 28.8% | -35.0% | 2.08 | $3.6B | 65.8 | C |
| 35 XLBState Street Materials Select Sector SPDR ETF | Materials | 0.08% | 1.68% | +18.3% | +43.5% | 17.7% | -23.2% | 0.75 | $7.8B | 65.7 | C |
| 36 BUGGlobal X Cybersecurity ETF | Technology | 0.50% | 0.02% | +42.9% | +120.1% | 38.6% | -37.7% | 0.98 | $2.1B | 65.1 | C |
| 37 VFHVanguard Financials Index Fund ETF Shares | Financial | 0.09% | 1.73% | +8.3% | +85.9% | 14.7% | -17.3% | 0.23 | $13.8B | 64.6 | C |
| 38 FSTAFidelity MSCI Consumer Staples Index ETF | Consumer Staples | 0.08% | 2.11% | +12.4% | +43.4% | 14.8% | -9.4% | 0.50 | $1.4B | 64.5 | B |
| 39 XSDState Street SPDR S&P Semiconductor ETF | Technology | 0.35% | 0.18% | +37.0% | +174.0% | 47.1% | -41.2% | 0.68 | $3.1B | 63.8 | C |
| 40 IYKiShares US Consumer Staples ETF | Consumer Staples | 0.37% | 2.44% | +14.2% | +37.2% | 14.6% | -10.9% | 0.63 | $1.6B | 63.8 | B |
| 41 XLIState Street Industrial Select Sector SPDR ETF | Industrials | 0.08% | 1.14% | +8.9% | +75.8% | 17.2% | -18.5% | 0.23 | $29.8B | 63.7 | B |
| 42 KBEState Street SPDR S&P Bank ETF | Financial | 0.35% | 2.23% | +18.2% | +102.7% | 19.3% | -26.0% | 0.68 | $1.5B | 63.2 | C |
| 43 ARKGARK Genomic Revolution ETF | Healthcare | 0.75% | — | +57.5% | +114.7% | 44.7% | -46.5% | 1.18 | $2.2B | 63.0 | C |
| 44 IYMiShares U.S. Basic Materials ETF | Materials | 0.37% | 1.29% | +23.8% | +53.2% | 20.4% | -23.6% | 0.92 | $1.3B | 62.5 | C |
| 45 FNCLFidelity MSCI Financials Index ETF | Financial | 0.08% | 1.63% | +8.3% | +85.9% | 14.6% | -17.3% | 0.23 | $2.2B | 61.8 | C |
| 46 OIHVanEck Oil Services ETF | Energy | 0.35% | 21.53% | +52.3% | +28.5% | 30.1% | -42.5% | 1.57 | $1.8B | 61.8 | C |
| 47 IYFiShares U.S. Financials ETF | Financial | 0.37% | 1.49% | +8.7% | +89.4% | 14.4% | -16.6% | 0.25 | $3.8B | 61.4 | C |
| 48 SKYYFirst Trust Cloud Computing ETF | Technology | 0.60% | — | +24.5% | +132.7% | 30.9% | -31.8% | 0.63 | $3.3B | 60.9 | C |
| 49 VNQVanguard Real Estate Index Fund ETF Shares | Real Estate | 0.13% | 3.68% | +4.3% | +45.4% | 13.9% | -17.4% | -0.05 | $66.4B | 60.5 | C |
| 50 SCHHSchwab U.S. REIT ETF | Real Estate | 0.07% | 2.97% | +8.0% | +48.0% | 13.9% | -17.8% | 0.21 | $10.6B | 60.0 | C |
| 51 USRTiShares Core U.S. REIT ETF | Real Estate | 0.08% | 2.78% | +9.4% | +54.8% | 13.7% | -18.7% | 0.32 | $4.3B | 59.8 | C |
| 52 KXIiShares Global Consumer Staples ETF | Consumer Staples | 0.38% | 2.24% | +11.2% | +38.5% | 14.0% | -10.7% | 0.44 | $1.1B | 59.7 | C |
| 53 COPXGlobal X Copper Miners ETF | Materials | 0.65% | 2.64% | +27.1% | +132.7% | 47.2% | -39.7% | 0.47 | $7.3B | 58.9 | C |
| 54 VISVanguard Industrials Index Fund ETF Shares | Industrials | 0.09% | 0.97% | +7.8% | +75.2% | 18.1% | -20.8% | 0.16 | $8.6B | 58.4 | C |
| 55 XLREState Street Real Estate Select Sector SPDR ETF | Real Estate | 0.08% | 3.39% | +3.6% | +45.4% | 14.4% | -16.6% | -0.10 | $7.7B | 57.3 | C |
| 56 VAWVanguard Materials Index Fund ETF Shares | Materials | 0.09% | 1.42% | +13.0% | +42.4% | 18.8% | -23.2% | 0.43 | $4.5B | 56.8 | C |
| 57 RWRState Street SPDR Dow Jones REIT ETF | Real Estate | 0.25% | 3.51% | +9.5% | +54.4% | 13.9% | -18.9% | 0.32 | $1.8B | 56.4 | C |
| 58 FIDUFidelity MSCI Industrials Index ETF | Industrials | 0.08% | 0.95% | +8.0% | +74.7% | 18.2% | -20.5% | 0.16 | $2.3B | 56.4 | C |
| 59 MOOVanEck Agribusiness ETF | Materials | 0.56% | 2.20% | +14.4% | +22.2% | 14.8% | -18.3% | 0.64 | $1.1B | 56.3 | C |
| 60 REZiShares Residential and Multisector Real Estate ETF | Real Estate | 0.48% | 2.65% | +10.2% | +59.5% | 15.9% | -15.0% | 0.33 | $791M | 55.9 | C |
| 61 IHFiShares U.S. Healthcare Providers ETF | Healthcare | 0.37% | 0.90% | +19.6% | +26.8% | 20.1% | -29.9% | 0.72 | $1.4B | 55.9 | C |
| 62 PAVEGlobal X U.S. Infrastructure Development ETF | Industrials | 0.47% | 0.84% | +10.3% | +84.5% | 20.3% | -26.2% | 0.26 | $13.4B | 55.6 | C |
| 63 XLUState Street Utilities Select Sector SPDR ETF | Utilities | 0.08% | 2.85% | -3.2% | +57.3% | 15.7% | -16.1% | -0.52 | $21.3B | 55.4 | C |
| 64 JXIiShares Global Utilities ETF | Utilities | 0.37% | 2.50% | +4.2% | +65.0% | 13.6% | -12.9% | -0.06 | $369M | 54.6 | C |
| 65 VPUVanguard Utilities Index Fund ETF Shares | Utilities | 0.09% | 2.83% | -3.3% | +57.9% | 15.3% | -15.6% | -0.54 | $9.5B | 54.2 | C |
| 66 GDXVanEck Gold Miners ETF | Materials | 0.51% | 0.79% | +10.7% | +188.8% | 50.1% | -38.9% | 0.11 | $26.3B | 54.2 | C |
| 67 FRELFidelity MSCI Real Estate Index ETF | Real Estate | 0.08% | 3.45% | +4.0% | +45.3% | 13.9% | -17.5% | -0.07 | $1.3B | 54.1 | C |
| 68 FMATFidelity MSCI Materials Index ETF | Materials | 0.08% | 1.43% | +12.7% | +42.0% | 18.8% | -23.2% | 0.41 | $574M | 53.1 | C |
| 69 VOXVanguard Communication Services Index Fund ETF Shares | Communication Services | 0.09% | 1.03% | -1.5% | +81.7% | 18.4% | -21.1% | -0.35 | $6.3B | 53.0 | C |
| 70 IYJiShares U.S. Industrials ETF | Industrials | 0.37% | 0.68% | +7.2% | +65.2% | 15.9% | -19.7% | 0.14 | $2.0B | 52.9 | C |
| 71 XLCState Street Communication Services Select Sector SPDR ETF | Communication Services | 0.08% | 1.31% | -7.6% | +69.6% | 16.3% | -18.0% | -0.78 | $22.5B | 52.9 | C |
| 72 IAIiShares U.S. Broker-Dealers & Securities Exchanges ETF | Financial | 0.37% | 1.20% | +5.3% | +112.3% | 20.7% | -23.1% | 0.01 | $1.3B | 52.8 | C |
| 73 RINGiShares MSCI Global Gold Miners ETF | Materials | 0.39% | 1.30% | +13.0% | +223.0% | 50.3% | -38.6% | 0.16 | $2.3B | 52.8 | C |
| 74 IYTiShares Transportation Average ETF | Industrials | 0.37% | 0.94% | +14.0% | +53.1% | 20.0% | -26.4% | 0.45 | $1.9B | 52.5 | C |
| 75 IYRiShares U.S. Real Estate ETF | Real Estate | 0.37% | 2.42% | +2.8% | +43.1% | 14.1% | -16.9% | -0.16 | $4.2B | 52.4 | C |
| 76 FUTYFidelity MSCI Utilities Index ETF | Utilities | 0.08% | 2.79% | -3.4% | +58.0% | 15.4% | -15.6% | -0.55 | $2.0B | 51.7 | C |
| 77 ITAiShares U.S. Aerospace & Defense ETF | Industrials | 0.37% | 0.65% | -3.7% | +91.7% | 23.0% | -20.0% | -0.38 | $12.1B | 51.3 | C |
| 78 FCOMFidelity MSCI Communication Services Index ETF | Communication Services | 0.08% | 1.00% | -1.8% | +81.1% | 18.3% | -21.2% | -0.37 | $1.8B | 50.7 | C |
| 79 GDXJVanEck Junior Gold Miners ETF | Materials | 0.52% | 2.67% | +7.0% | +207.3% | 55.5% | -41.3% | 0.04 | $8.4B | 50.2 | D |
| 80 SILGlobal X Silver Miners ETF | Materials | 0.65% | 1.37% | +10.3% | +213.2% | 54.4% | -39.4% | 0.10 | $4.4B | 49.7 | C |
| 81 IDUiShares U.S. Utilities ETF | Utilities | 0.37% | 2.36% | -2.0% | +58.6% | 14.8% | -15.3% | -0.47 | $1.4B | 49.4 | D |
| 82 FDNFirst Trust Dow Jones Internet Index Fund | Technology | 0.49% | — | +1.0% | +86.2% | 21.1% | -25.0% | -0.19 | $5.2B | 48.9 | D |
| 83 XLYState Street Consumer Discretionary Select Sector SPDR ETF | Consumer Discretionary | 0.08% | 0.83% | -3.9% | +53.6% | 19.3% | -26.0% | -0.46 | $21.3B | 48.1 | D |
| 84 XTNState Street SPDR S&P Transportation ETF | Industrials | 0.35% | 0.76% | +15.9% | +46.9% | 26.8% | -33.7% | 0.41 | $296M | 48.1 | D |
| 85 XMEState Street SPDR S&P Metals & Mining ETF | Materials | 0.35% | 0.36% | -0.7% | +96.4% | 37.1% | -30.5% | -0.15 | $4.1B | 48.0 | D |
| 86 VNQIVanguard Global ex-U.S. Real Estate Index Fund ETF Shares | Real Estate | 0.12% | 14.10% | -6.8% | +31.8% | 14.0% | -17.6% | -0.84 | $3.6B | 47.6 | D |
| 87 XSWState Street SPDR S&P Software & Services ETF | Technology | 0.35% | — | +9.6% | +82.9% | 31.3% | -33.8% | 0.15 | $473M | 47.2 | D |
| 88 VCRVanguard Consumer Discretionary Index Fund ETF Shares | Consumer Discretionary | 0.09% | 0.79% | -2.6% | +52.8% | 19.2% | -27.4% | -0.40 | $6.2B | 45.9 | D |
| 89 XARState Street SPDR S&P Aerospace & Defense ETF | Industrials | 0.35% | 0.19% | -8.2% | +95.4% | 29.2% | -26.6% | -0.45 | $5.5B | 45.9 | D |
| 90 SILJAmplify Junior Silver Miners ETF | Materials | 0.69% | 2.39% | +3.3% | +194.6% | 58.9% | -42.6% | -0.03 | $3.6B | 45.9 | D |
| 91 XRTState Street SPDR S&P Retail ETF | Consumer Discretionary | 0.35% | 0.85% | +4.1% | +55.9% | 20.6% | -25.6% | -0.04 | $435M | 44.6 | D |
| 92 IGViShares Expanded Tech-Software Sector ETF | Technology | 0.38% | 0.04% | -2.5% | +65.8% | 32.4% | -36.6% | -0.23 | $13.9B | 44.0 | D |
| 93 FDISFidelity MSCI Consumer Discretionary Index ETF | Consumer Discretionary | 0.08% | 0.79% | -2.5% | +53.1% | 19.1% | -27.4% | -0.39 | $1.6B | 43.9 | D |
| 94 IYCiShares US Consumer Discretionary ETF | Consumer Discretionary | 0.37% | 0.53% | -3.9% | +57.0% | 15.4% | -21.6% | -0.58 | $1.2B | 43.3 | D |
| 95 JETSU.S. Global Jets ETF | Consumer Discretionary | 0.60% | 0.89% | +4.5% | +75.1% | 32.8% | -35.2% | -0.02 | $838M | 42.5 | D |
| 96 ICLNiShares Global Clean Energy ETF | Energy | 0.38% | 1.15% | +0.4% | +30.3% | 30.7% | -32.4% | -0.15 | $2.2B | 41.0 | D |
| 97 LITGlobal X Lithium & Battery Tech ETF | Materials | 0.75% | 0.83% | +8.4% | +29.7% | 30.9% | -38.1% | 0.11 | $1.4B | 39.4 | D |
| 98 IHIiShares U.S. Medical Devices ETF | Healthcare | 0.37% | 0.48% | -11.2% | +25.2% | 20.5% | -26.6% | -0.79 | $3.4B | 37.8 | D |
| 99 XHBState Street SPDR S&P Homebuilders ETF | Consumer Discretionary | 0.35% | 1.01% | -7.7% | +42.7% | 28.0% | -30.5% | -0.45 | $1.4B | 37.4 | D |
| 100 ITBiShares U.S. Home Construction ETF | Consumer Discretionary | 0.37% | 1.39% | -11.6% | +29.5% | 29.9% | -33.6% | -0.55 | $2.4B | 36.3 | F |
| 101 REMiShares Mortgage Real Estate Capped ETF | Real Estate | 0.48% | 11.31% | -14.1% | +19.0% | 18.1% | -26.3% | -1.05 | $458M | 33.1 | F |
| 102 URAGlobal X Uranium ETF | Materials | 0.69% | 8.28% | -27.0% | +51.2% | 51.1% | -44.9% | -0.63 | $5.6B | 32.9 | F |
| 103 NLRVanEck Uranium and Nuclear ETF | Materials | 0.52% | 3.50% | -34.1% | +42.8% | 44.0% | -45.0% | -0.89 | $3.5B | 32.6 | F |
| 104 MORTVanEck Mortgage REIT Income ETF | Real Estate | 0.43% | 18.34% | -14.8% | +18.2% | 18.0% | -26.9% | -1.10 | $325M | 32.5 | F |
Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.
What Makes a Good Fund Here
Sector funds are a tilt on top of a diversified core, not a replacement for one. The most useful comparison is across sectors rather than within them, since the sector you choose matters far more than which fund you use to get it.
The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.
Head-to-Head Comparisons
Full metric-by-metric breakdowns for the closest calls in this group.
Frequently Asked Questions
What is the best sector ETF?
XLE currently ranks highest of the 104 sector funds tracked, with a score of 81.2 (B+). Sector leadership rotates constantly, so a top ranking reflects recent conditions more than it predicts future ones.
Should I buy sector ETFs?
Only as a deliberate overweight. A broad index fund already holds every sector at market weight, so adding a sector fund is a bet that one part of the market will beat the rest — a bet that is right about as often as it is wrong.
Compare any of these funds directly
Side-by-side metrics, holdings overlap and return correlation for any pair.