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Sector Indices

Sector indices track the performance of specific segments or industries within a broader stock market. These indices group companies from a particular sector, such as technology, healthcare, or energy, and allow investors to monitor and compare the performance of companies within that industry. Sector indices are useful for investors looking to gain exposure to specific sectors or for those who want to benchmark their investments against a sector’s performance.

Example

The NASDAQ Technology Index tracks the performance of technology companies listed on the NASDAQ, providing insight into the sector's overall performance.

Key points

• Indices that track the performance of specific sectors or industries in the stock market.

• Help investors monitor sector performance and compare companies within an industry.

• Often used by investors seeking exposure to specific sectors.

Quick Answers to Curious Questions

They allow investors to track and compare the performance of specific industries, helping them target investments in sectors with growth potential.

Examples include the S&P 500 Technology Sector Index and the Dow Jones U.S. Healthcare Index, which track performance within their respective sectors.

They help investors benchmark their sector-specific investments and can guide decisions on asset allocation within different industries.