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Broad Market vs. Sector ETFs: Risk & Return Revisited (2007–2024)

What 18 years of data reveal about returns, risk, and the importance of checking AI‑assisted work

David Bernstein's avatar
David Bernstein
Aug 29, 2025
∙ Paid

Abstract:

We compare two low‑cost U.S. equity strategies over 2007–2024: a 100% allocation to the S&P 500, and an equally funded five‑ETF sector sleeve (Technology, Energy, Utilities, Consumer Staples, Health Care) set once in 2007 and left to drift. Using annual total returns, we find similar average returns but meaningfully lower volatility for the fiv…

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