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4 ETFs to Turbocharge Your Returns

Sector ETFs can enhance overall returns if you choose carefully.

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rocket 185While many investors go about their business investing in the market, few really pay attention to whether or not they are beating the market indices.

Attention to detail is important — if you aren’t beating a given index, then why aren’t you just invested in mutual funds or ETFs that mirror that index? For all you know, your actively managed portfolio might even be more risky.

That’s why I like to “turbocharge” my portfolio by adding in various stocks and ETFs that I believe will outperform the market, on top of whatever market index ETFs I have anchoring a given asset class in my diversified portfolio. In this case, I’m looking at four sector ETFs that I think might be overweight.

Why sector ETFs? The idea is that sector-concentrated funds often beat the market because of their concentration. If you’ve ever glanced at a large fund family’s sector fund offerings, you’ll see they often significantly lag or significantly outperform the broad indices. If you choose the right sectors, you’ve got your turbocharge fuel. But be advised: Choosing the wrong sectors could stall your portfolio.

Here’s a look at four sector ETFs that look poised to race past the broader market.

Article printed from InvestorPlace Media,

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