global and sector investing
Educational articles in this subcategory.
Glossary: Sector and Style Investing Terms
This glossary covers key terms for sector allocation, style investing, and global equity strategies. Terms are organized alphabetically with cross-ref...
Building Custom Baskets with Direct Indexing
Direct indexing replaces a single ETF with hundreds of individual stock positions that replicate the index. This sounds like unnecessary complexity—un...
Tracking Sector Breadth and Momentum
Market rallies powered by a handful of stocks are fragile. In the first half of 2023, the S&P 500 gained **16%**, but the equal-weight S&P 500 (RSP) g...
Geopolitical Risk Assessment for Industry Groups
Geopolitical risk shows up in portfolios as **sudden earnings revisions**, **supply chain disruptions**, and **multiple compression for exposed sector...
Managing Currency Risk When Buying ADRs
American Depositary Receipts let you buy foreign stocks through US exchanges with dollar-denominated prices and normal settlement. But the convenience...
Factor and Smart Beta Strategies: Beyond Market Cap Weighting
Factor investing attempts to capture systematic return premiums—**characteristics that have historically predicted outperformance** across stocks, tim...
Thematic Investing: ESG, Clean Energy, and Innovation Funds
Thematic investing—betting on broad trends like clean energy, ESG, or technological disruption—**appeals to conviction but often disappoints in practi...
U.S. vs International Allocation: How Much Should You Diversify Abroad?
American investors typically hold **70-80% of their equity allocation in U.S. stocks**—despite the U.S. representing only **42% of global equity marke...
Small-Cap vs Large-Cap: Why Sector Composition Drives Performance Differences
When investors compare small-cap and large-cap performance, they often miss that **they're comparing different economies**. The Russell 2000 (small ca...
Real Estate Investment Trusts: What Equity Investors Need to Know
REITs trade like stocks but behave like bonds with equity upside—**you collect yield** (averaging 4-5% historically), **you get property appreciation*...
Utility Sector Yield Comparisons
Utility stocks attract investors for one reason: **yield**. The sector consistently offers **3-5% dividend yields** compared to the S&P 500's **1.5%**...
Industrial Sector and Capital Spending Trends
Industrial companies sell the capital goods that other businesses need to operate and grow. This creates a unique dynamic: **industrial revenue depend...
Consumer Discretionary vs. Staples Playbooks
Consumer Discretionary and Consumer Staples represent opposite ends of the cyclical spectrum - yet both sectors derive revenue from the same household...
Energy Sector Sensitivity to Commodity Prices
Energy stocks don't move randomly - they move with commodities. The S&P 500 Energy sector shows a **0.65-0.75 correlation** with WTI crude oil prices ...
Financial Sector Balance Sheet Metrics
Financial stocks require a completely different analytical toolkit than industrial or technology companies. Standard metrics like P/E ratios and opera...
Healthcare Sector Regulation Watchpoints
Healthcare is the **most regulated sector** in US equities. FDA decisions can move individual biotech stocks 50-80% in a single day. Drug pricing legi...
Technology Sector Drivers and Metrics
The Technology sector represents **~29% of the S&P 500** but contains wildly different business models: recurring SaaS revenue, cyclical semiconductor...
Building a Sector ETF Core Allocation
A sector ETF allocation gives you **control over portfolio factor exposures**, **precise tax-loss harvesting opportunities**, and **flexibility to til...
Sector Rotation Strategies Through the US Business Cycle
Sector rotation strategies attempt to **overweight sectors before they outperform** and **underweight before they lag**, using business cycle position...
Using GICS and Sector Classification Systems
Sector classification systems determine **how you benchmark performance**, **which ETFs you buy**, and **how you measure diversification**. Use the wr...