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 September 8, 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
XLK
State Street Technology Select Sector SPDR ETF
B+
78.5/100
- scores 78.5 on the overall model (grade B+)
#2
XLE
State Street Energy Select Sector SPDR ETF
B+
77.9/100
- scores 77.9 on the overall model (grade B+)
#3
VGT
Vanguard Information Technology Index Fund ETF Shares
B+
77.3/100
- largest and most liquid at $170.7B
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 XLKState Street Technology Select Sector SPDR ETF | Technology | 0.08% | 0.59% | +43.7% | +124.2% | 26.2% | -25.7% | 1.47 | $121.4B | 78.5 | B+ |
| 2 XLEState Street Energy Select Sector SPDR ETF | Energy | 0.08% | 3.37% | +52.9% | +54.5% | 21.6% | -20.1% | 2.21 | $41.4B | 77.9 | B+ |
| 3 VGTVanguard Information Technology Index Fund ETF Shares | Technology | 0.09% | 0.36% | +39.2% | +128.4% | 24.8% | -27.2% | 1.38 | $170.7B | 77.3 | B+ |
| 4 SMHVanEck Semiconductor ETF | Technology | 0.35% | 0.20% | +96.2% | +286.2% | 39.3% | -35.7% | 2.32 | $67.8B | 77.0 | B+ |
| 5 IYZiShares U.S. Telecommunications ETF | Communication Services | 0.37% | 1.90% | +37.8% | +107.5% | 20.4% | -13.8% | 1.60 | $1.2B | 75.8 | B+ |
| 6 SOXXiShares Semiconductor ETF | Technology | 0.33% | 0.60% | +114.9% | +228.7% | 45.4% | -41.4% | 2.42 | $41.8B | 75.7 | B+ |
| 7 MLPXGlobal X MLP & Energy Infrastructure ETF | Energy | 0.45% | 4.03% | +32.3% | +107.4% | 16.4% | -16.8% | 1.66 | $3.7B | 75.6 | B |
| 8 VDEVanguard Energy Index Fund ETF Shares | Energy | 0.09% | 1.37% | +52.5% | +54.7% | 21.5% | -21.4% | 2.20 | $13.3B | 75.3 | B |
| 9 FTECFidelity MSCI Information Technology Index ETF | Technology | 0.08% | 0.35% | +39.5% | +130.0% | 24.8% | -27.3% | 1.39 | $21.3B | 75.1 | B |
| 10 XBIState Street SPDR S&P Biotech ETF | Healthcare | 0.35% | 0.35% | +70.4% | +108.1% | 27.9% | -33.0% | 2.35 | $11.4B | 73.6 | B |
| 11 SOXQInvesco PHLX Semiconductor ETF | Technology | 0.19% | 0.31% | +107.1% | +240.1% | 44.4% | -39.4% | 2.30 | $3.0B | 73.0 | B |
| 12 IYWiShares U.S. Technology ETF | Technology | 0.37% | 0.01% | +38.6% | +133.7% | 24.2% | -26.5% | 1.39 | $25.2B | 72.6 | B |
| 13 FENYFidelity MSCI Energy Index ETF | Energy | 0.08% | 2.19% | +52.6% | +54.9% | 21.5% | -21.5% | 2.21 | $2.1B | 72.5 | B |
| 14 VHTVanguard Health Care Index Fund ETF Shares | Healthcare | 0.09% | 0.88% | +24.5% | +35.4% | 15.6% | -16.9% | 1.25 | $22.0B | 71.8 | B |
| 15 AMLPAlerian MLP ETF | Energy | 1.01% | 7.33% | +26.9% | +71.2% | 12.7% | -14.3% | 1.72 | $13.4B | 71.6 | B |
| 16 XLVState Street Health Care Select Sector SPDR ETF | Healthcare | 0.08% | 1.06% | +23.3% | +32.3% | 16.2% | -17.1% | 1.13 | $43.9B | 70.7 | B |
| 17 IBBiShares Biotechnology ETF | Healthcare | 0.44% | 0.17% | +45.2% | +64.5% | 21.9% | -24.9% | 1.84 | $10.5B | 69.8 | B |
| 18 IGMiShares Expanded Tech Sector ETF | Technology | 0.37% | 0.13% | +35.8% | +146.7% | 24.8% | -26.4% | 1.25 | $10.7B | 69.4 | B |
| 19 IYEiShares U.S. Energy ETF | Energy | 0.37% | 1.23% | +50.7% | +53.3% | 21.1% | -20.4% | 2.17 | $1.9B | 69.4 | B |
| 20 KBWBInvesco KBW Bank ETF | Financial | 0.35% | 1.95% | +29.1% | +150.1% | 20.2% | -25.4% | 1.19 | $6.8B | 68.9 | B |
| 21 FHLCFidelity MSCI Health Care Index ETF | Healthcare | 0.08% | 1.23% | +24.6% | +35.4% | 15.7% | -16.9% | 1.25 | $3.5B | 68.9 | B |
| 22 PSIInvesco Semiconductors ETF | Technology | 0.55% | 0.14% | +119.3% | +220.9% | 51.7% | -41.1% | 2.21 | $2.4B | 68.4 | B |
| 23 COPXGlobal X Copper Miners ETF | Materials | 0.65% | 2.07% | +89.8% | +171.0% | 46.8% | -39.7% | 1.81 | $8.4B | 68.2 | B |
| 24 XSDState Street SPDR S&P Semiconductor ETF | Technology | 0.35% | 0.09% | +71.6% | +149.4% | 46.5% | -41.2% | 1.43 | $2.6B | 67.7 | B |
| 25 XPHState Street SPDR S&P Pharmaceuticals ETF | Healthcare | 0.35% | 0.34% | +48.0% | +70.4% | 22.9% | -23.6% | 1.88 | $587M | 67.2 | B |
| 26 XLIState Street Industrial Select Sector SPDR ETF | Industrials | 0.08% | 0.71% | +17.1% | +74.2% | 17.1% | -18.5% | 0.70 | $31.9B | 65.4 | B |
| 27 XMEState Street SPDR S&P Metals & Mining ETF | Materials | 0.35% | 0.27% | +43.4% | +134.2% | 38.1% | -30.5% | 1.01 | $4.9B | 64.4 | C |
| 28 XLFState Street Financial Select Sector SPDR ETF | Financial | 0.08% | 1.00% | +9.7% | +73.2% | 14.6% | -15.5% | 0.32 | $54.6B | 64.2 | C |
| 29 XOPState Street SPDR S&P Oil & Gas Exploration & Production ETF | Energy | 0.35% | 0.73% | +53.0% | +36.9% | 28.9% | -35.0% | 1.66 | $4.0B | 63.8 | C |
| 30 GDXVanEck Gold Miners ETF | Materials | 0.51% | 0.64% | +49.4% | +254.9% | 50.9% | -38.9% | 0.87 | $30.5B | 63.8 | B |
| 31 CIBRFirst Trust NASDAQ Cybersecurity ETF | Technology | 0.58% | 0.39% | +28.6% | +103.5% | 28.2% | -22.0% | 0.83 | $16.1B | 63.5 | B |
| 32 IEOiShares U.S. Oil & Gas Exploration & Production ETF | Energy | 0.37% | 1.70% | +58.3% | +50.9% | 26.4% | -31.5% | 2.02 | $622M | 63.2 | C |
| 33 PPHVanEck Pharmaceutical ETF | Healthcare | 0.36% | 1.92% | +26.7% | +43.6% | 18.7% | -18.1% | 1.16 | $1.0B | 62.9 | C |
| 34 OIHVanEck Oil Services ETF | Energy | 0.35% | 1.13% | +70.9% | +27.3% | 29.6% | -43.8% | 2.23 | $2.0B | 62.9 | C |
| 35 IYHiShares U.S. Healthcare ETF | Healthcare | 0.37% | 4.02% | +22.9% | +31.0% | 16.2% | -17.9% | 1.11 | $3.9B | 62.8 | C |
| 36 RINGiShares MSCI Global Gold Miners ETF | Materials | 0.39% | 1.05% | +53.7% | +305.7% | 51.2% | -38.6% | 0.95 | $2.5B | 62.3 | C |
| 37 GDXJVanEck Junior Gold Miners ETF | Materials | 0.52% | 2.07% | +53.8% | +293.3% | 56.2% | -41.3% | 0.87 | $9.6B | 61.9 | C |
| 38 SILGlobal X Silver Miners ETF | Materials | 0.65% | 1.04% | +62.1% | +307.4% | 55.3% | -39.4% | 1.03 | $5.3B | 61.7 | C |
| 39 IYMiShares U.S. Basic Materials ETF | Materials | 0.37% | 0.94% | +30.2% | +53.5% | 20.4% | -23.6% | 1.23 | $1.1B | 61.5 | C |
| 40 SILJAmplify Junior Silver Miners ETF | Materials | 0.69% | 1.77% | +69.4% | +280.6% | 60.2% | -41.1% | 1.07 | $4.1B | 61.2 | C |
| 41 VFHVanguard Financials Index Fund ETF Shares | Financial | 0.09% | 1.65% | +9.7% | +76.6% | 14.9% | -17.3% | 0.32 | $14.8B | 61.1 | C |
| 42 HACKAmplify Cybersecurity ETF | Technology | 0.60% | 0.05% | +29.8% | +110.4% | 29.8% | -21.9% | 0.83 | $3.0B | 61.0 | C |
| 43 ITAiShares U.S. Aerospace & Defense ETF | Industrials | 0.37% | 0.47% | +13.4% | +108.7% | 23.2% | -15.8% | 0.36 | $13.6B | 60.5 | C |
| 44 XLUState Street Utilities Select Sector SPDR ETF | Utilities | 0.08% | 4.53% | +7.0% | +48.0% | 15.2% | -13.2% | 0.13 | $21.8B | 60.5 | C |
| 45 VISVanguard Industrials Index Fund ETF Shares | Industrials | 0.09% | 0.65% | +16.8% | +73.5% | 18.2% | -20.8% | 0.65 | $8.6B | 60.3 | C |
| 46 XLPState Street Consumer Staples Select Sector SPDR ETF | Consumer Staples | 0.08% | 2.05% | +6.8% | +26.7% | 14.4% | -9.7% | 0.12 | $14.5B | 59.4 | C |
| 47 ARKGARK Genomic Revolution ETF | Healthcare | 0.75% | — | +83.6% | +49.5% | 44.8% | -46.5% | 1.76 | $2.0B | 59.1 | C |
| 48 IYFiShares U.S. Financials ETF | Financial | 0.37% | 0.78% | +11.5% | +83.7% | 14.5% | -16.6% | 0.45 | $4.3B | 59.0 | C |
| 49 VPUVanguard Utilities Index Fund ETF Shares | Utilities | 0.09% | 2.33% | +6.7% | +48.2% | 14.9% | -13.0% | 0.12 | $10.1B | 59.0 | C |
| 50 USRTiShares Core U.S. REIT ETF | Real Estate | 0.08% | 2.60% | +14.2% | +42.0% | 13.5% | -18.7% | 0.68 | $4.6B | 58.9 | C |
| 51 VNQVanguard Real Estate Index Fund ETF Shares | Real Estate | 0.13% | 3.47% | +7.8% | +33.9% | 13.6% | -17.4% | 0.20 | $70.8B | 58.7 | C |
| 52 SCHHSchwab U.S. REIT ETF | Real Estate | 0.07% | 2.80% | +11.8% | +36.6% | 13.6% | -17.8% | 0.50 | $11.2B | 58.7 | C |
| 53 FIDUFidelity MSCI Industrials Index ETF | Industrials | 0.08% | 0.97% | +17.0% | +73.4% | 18.2% | -20.5% | 0.66 | $2.3B | 58.5 | C |
| 54 FNCLFidelity MSCI Financials Index ETF | Financial | 0.08% | 1.54% | +9.7% | +76.6% | 14.8% | -17.3% | 0.32 | $2.4B | 58.3 | C |
| 55 VDCVanguard Consumer Staples Index Fund ETF Shares | Consumer Staples | 0.09% | 2.09% | +5.2% | +27.9% | 14.0% | -9.3% | 0.01 | $9.3B | 58.3 | C |
| 56 XARState Street SPDR S&P Aerospace & Defense ETF | Industrials | 0.35% | 0.31% | +17.3% | +121.9% | 29.6% | -19.7% | 0.42 | $5.9B | 57.5 | C |
| 57 FUTYFidelity MSCI Utilities Index ETF | Utilities | 0.08% | 2.77% | +6.8% | +48.6% | 14.9% | -13.0% | 0.12 | $2.3B | 56.8 | C |
| 58 JXIiShares Global Utilities ETF | Utilities | 0.37% | 2.53% | +13.5% | +55.1% | 13.1% | -12.2% | 0.65 | $299M | 56.7 | C |
| 59 PAVEGlobal X U.S. Infrastructure Development ETF | Industrials | 0.47% | 0.79% | +18.5% | +81.0% | 20.5% | -26.2% | 0.66 | $13.5B | 56.6 | C |
| 60 XLREState Street Real Estate Select Sector SPDR ETF | Real Estate | 0.08% | 3.19% | +7.7% | +34.1% | 14.0% | -16.6% | 0.19 | $8.3B | 56.2 | C |
| 61 RWRState Street SPDR Dow Jones REIT ETF | Real Estate | 0.25% | 3.06% | +14.7% | +41.4% | 13.8% | -18.9% | 0.70 | $1.8B | 55.8 | C |
| 62 IAKiShares U.S. Insurance ETF | Financial | 0.37% | 2.48% | +11.2% | +64.0% | 16.1% | -11.6% | 0.38 | $511M | 55.6 | C |
| 63 FSTAFidelity MSCI Consumer Staples Index ETF | Consumer Staples | 0.08% | 2.18% | +5.1% | +27.8% | 14.0% | -9.3% | 0.01 | $1.4B | 55.3 | C |
| 64 XLBState Street Materials Select Sector SPDR ETF | Materials | 0.08% | 2.65% | +15.0% | +35.1% | 17.9% | -23.2% | 0.56 | $8.8B | 55.0 | C |
| 65 SKYYFirst Trust Cloud Computing ETF | Technology | 0.60% | — | +23.5% | +100.7% | 29.9% | -31.8% | 0.62 | $3.4B | 54.2 | C |
| 66 XLCState Street Communication Services Select Sector SPDR ETF | Communication Services | 0.08% | 1.28% | -1.5% | +70.9% | 15.2% | -18.0% | -0.43 | $22.4B | 54.1 | C |
| 67 LITGlobal X Lithium & Battery Tech ETF | Materials | 0.75% | 0.66% | +47.0% | +31.8% | 33.3% | -46.0% | 1.26 | $1.6B | 53.9 | C |
| 68 IAIiShares U.S. Broker-Dealers & Securities Exchanges ETF | Financial | 0.37% | 1.05% | +14.6% | +111.4% | 20.5% | -23.1% | 0.47 | $1.4B | 53.4 | C |
| 69 IYKiShares US Consumer Staples ETF | Consumer Staples | 0.37% | 3.29% | +8.7% | +23.4% | 14.0% | -10.9% | 0.26 | $1.4B | 53.4 | C |
| 70 VOXVanguard Communication Services Index Fund ETF Shares | Communication Services | 0.09% | 0.47% | +2.5% | +79.4% | 17.4% | -21.1% | -0.15 | $5.9B | 53.4 | C |
| 71 MOOVanEck Agribusiness ETF | Materials | 0.56% | 1.27% | +20.6% | +16.9% | 14.5% | -23.1% | 1.07 | $1.1B | 53.3 | C |
| 72 IDUiShares U.S. Utilities ETF | Utilities | 0.37% | 2.08% | +6.1% | +48.8% | 14.4% | -12.3% | 0.08 | $1.3B | 53.2 | C |
| 73 KREState Street SPDR S&P Regional Banking ETF | Financial | 0.35% | 2.17% | +16.3% | +87.5% | 22.1% | -28.2% | 0.51 | $4.0B | 52.8 | C |
| 74 FRELFidelity MSCI Real Estate Index ETF | Real Estate | 0.08% | 3.30% | +7.2% | +33.6% | 13.6% | -17.5% | 0.16 | $1.5B | 52.4 | C |
| 75 VAWVanguard Materials Index Fund ETF Shares | Materials | 0.09% | 1.34% | +13.8% | +37.6% | 18.9% | -23.2% | 0.47 | $4.5B | 52.4 | C |
| 76 KBEState Street SPDR S&P Bank ETF | Financial | 0.35% | 2.16% | +14.5% | +94.8% | 20.6% | -26.0% | 0.46 | $1.6B | 52.0 | C |
| 77 REZiShares Residential and Multisector Real Estate ETF | Real Estate | 0.48% | 2.01% | +12.0% | +45.1% | 15.6% | -15.0% | 0.45 | $849M | 51.9 | C |
| 78 KXIiShares Global Consumer Staples ETF | Consumer Staples | 0.38% | 2.35% | +5.3% | +24.2% | 13.1% | -10.3% | 0.02 | $1.1B | 51.8 | C |
| 79 IYRiShares U.S. Real Estate ETF | Real Estate | 0.37% | 1.82% | +6.8% | +32.0% | 13.7% | -16.9% | 0.13 | $4.4B | 51.4 | C |
| 80 IYJiShares U.S. Industrials ETF | Industrials | 0.37% | 0.57% | +10.9% | +57.1% | 16.0% | -19.7% | 0.37 | $1.9B | 51.4 | C |
| 81 FCOMFidelity MSCI Communication Services Index ETF | Communication Services | 0.08% | 1.00% | +2.3% | +79.1% | 17.2% | -21.2% | -0.16 | $1.8B | 51.2 | C |
| 82 IYTiShares Transportation Average ETF | Industrials | 0.37% | 2.24% | +19.2% | +42.4% | 20.0% | -26.4% | 0.71 | $2.2B | 51.0 | C |
| 83 URAGlobal X Uranium ETF | Materials | 0.69% | 4.57% | +22.2% | +111.5% | 52.8% | -39.3% | 0.33 | $6.4B | 50.8 | D |
| 84 ICLNiShares Global Clean Energy ETF | Energy | 0.38% | 1.06% | +26.0% | +23.7% | 30.4% | -31.8% | 0.69 | $2.2B | 50.6 | D |
| 85 VNQIVanguard Global ex-U.S. Real Estate Index Fund ETF Shares | Real Estate | 0.12% | 4.81% | -0.1% | +28.6% | 13.8% | -16.4% | -0.37 | $3.8B | 49.5 | C |
| 86 FMATFidelity MSCI Materials Index ETF | Materials | 0.08% | 1.38% | +14.1% | +37.5% | 18.9% | -23.2% | 0.48 | $620M | 49.4 | C |
| 87 IHFiShares U.S. Healthcare Providers ETF | Healthcare | 0.37% | 0.92% | +20.6% | +18.7% | 19.9% | -29.9% | 0.78 | $1.2B | 49.0 | C |
| 88 XTNState Street SPDR S&P Transportation ETF | Industrials | 0.35% | 0.70% | +22.2% | +37.5% | 27.0% | -33.7% | 0.64 | $360M | 47.1 | D |
| 89 BUGGlobal X Cybersecurity ETF | Technology | 0.50% | 0.03% | +19.7% | +63.4% | 35.6% | -37.7% | 0.41 | $1.7B | 46.4 | D |
| 90 XLYState Street Consumer Discretionary Select Sector SPDR ETF | Consumer Discretionary | 0.08% | 1.02% | -2.3% | +35.0% | 19.4% | -26.0% | -0.37 | $22.7B | 45.5 | D |
| 91 FDNFirst Trust Dow Jones Internet Index Fund | Technology | 0.49% | — | +2.5% | +69.5% | 20.5% | -25.0% | -0.12 | $5.4B | 45.3 | D |
| 92 NLRVanEck Uranium and Nuclear ETF | Materials | 0.52% | 2.67% | +6.6% | +95.5% | 44.4% | -37.5% | 0.04 | $4.2B | 45.1 | D |
| 93 VCRVanguard Consumer Discretionary Index Fund ETF Shares | Consumer Discretionary | 0.09% | 0.73% | -1.4% | +36.1% | 19.4% | -27.4% | -0.33 | $6.6B | 43.3 | D |
| 94 FDISFidelity MSCI Consumer Discretionary Index ETF | Consumer Discretionary | 0.08% | 0.73% | -1.2% | +36.5% | 19.3% | -27.4% | -0.32 | $1.7B | 41.2 | D |
| 95 IYCiShares US Consumer Discretionary ETF | Consumer Discretionary | 0.37% | 0.42% | -4.8% | +42.1% | 15.4% | -21.6% | -0.64 | $1.2B | 40.5 | D |
| 96 JETSU.S. Global Jets ETF | Consumer Discretionary | 0.60% | 0.82% | +9.1% | +59.1% | 32.4% | -35.2% | 0.13 | $765M | 39.5 | D |
| 97 IGViShares Expanded Tech-Software Sector ETF | Technology | 0.38% | 0.02% | -5.0% | +43.8% | 31.4% | -36.6% | -0.32 | $15.7B | 39.4 | D |
| 98 REMiShares Mortgage Real Estate Capped ETF | Real Estate | 0.48% | 8.93% | -0.1% | +17.9% | 16.7% | -20.2% | -0.30 | $540M | 38.6 | D |
| 99 XSWState Street SPDR S&P Software & Services ETF | Technology | 0.35% | 0.01% | +3.6% | +51.7% | 30.6% | -33.8% | -0.04 | $509M | 38.3 | D |
| 100 MORTVanEck Mortgage REIT Income ETF | Real Estate | 0.43% | 15.22% | -1.0% | +18.2% | 16.5% | -19.9% | -0.36 | $362M | 38.2 | D |
| 101 XRTState Street SPDR S&P Retail ETF | Consumer Discretionary | 0.35% | 0.59% | -1.1% | +44.2% | 20.6% | -25.6% | -0.30 | $362M | 37.3 | D |
| 102 XHBState Street SPDR S&P Homebuilders ETF | Consumer Discretionary | 0.35% | 0.77% | -14.9% | +29.2% | 27.9% | -30.5% | -0.72 | $1.3B | 34.3 | D |
| 103 IHIiShares U.S. Medical Devices ETF | Healthcare | 0.37% | 0.44% | -16.8% | +3.3% | 20.3% | -26.6% | -1.07 | $3.5B | 33.5 | F |
| 104 ITBiShares U.S. Home Construction ETF | Consumer Discretionary | 0.37% | 0.68% | -21.5% | +13.5% | 29.3% | -33.4% | -0.90 | $2.4B | 31.9 | 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?
XLK currently ranks highest of the 104 sector funds tracked, with a score of 78.5 (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.