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 July 29, 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
#3
XLE
State Street Energy Select Sector SPDR ETF
B+
76.3/100
- scores 76.3 on the overall model (grade B+)
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 IYZiShares U.S. Telecommunications ETF | Communication Services | 0.38% | 1.99% | +35.7% | +89.7% | 19.7% | -13.8% | 1.56 | $1.2B | 77.0 | B+ |
| 2 SMHVanEck Semiconductor ETF | Technology | 0.35% | 0.17% | +73.6% | +231.5% | 38.0% | -35.7% | 1.80 | $77.2B | 76.6 | B+ |
| 3 XLEState Street Energy Select Sector SPDR ETF | Energy | 0.08% | 3.75% | +37.3% | +48.8% | 21.1% | -20.1% | 1.53 | $35.7B | 76.3 | B+ |
| 4 SOXXiShares Semiconductor ETF | Technology | 0.34% | 0.64% | +90.1% | +177.0% | 43.7% | -41.4% | 1.95 | $47.8B | 75.6 | B+ |
| 5 MLPXGlobal X MLP & Energy Infrastructure ETF | Energy | 0.45% | 4.13% | +28.3% | +101.3% | 15.8% | -16.8% | 1.48 | $3.5B | 75.3 | B+ |
| 6 VHTVanguard Health Care Index Fund ETF Shares | Healthcare | 0.09% | 0.91% | +27.0% | +33.6% | 15.3% | -16.9% | 1.44 | $20.4B | 75.2 | B+ |
| 7 XLVState Street Health Care Select Sector SPDR ETF | Healthcare | 0.08% | 1.08% | +25.0% | +31.6% | 15.8% | -17.1% | 1.27 | $40.6B | 74.2 | B |
| 8 VDEVanguard Energy Index Fund ETF Shares | Energy | 0.09% | 1.52% | +37.3% | +49.0% | 21.0% | -21.4% | 1.54 | $11.1B | 74.0 | B |
| 9 XBIState Street SPDR S&P Biotech ETF | Healthcare | 0.35% | 0.36% | +71.6% | +83.2% | 26.7% | -33.0% | 2.49 | $10.7B | 73.8 | B |
| 10 USRTiShares Core U.S. REIT ETF | Real Estate | 0.08% | 2.57% | +25.5% | +45.8% | 14.0% | -18.7% | 1.47 | $4.4B | 72.9 | B |
| 11 XLKState Street Technology Select Sector SPDR ETF | Technology | 0.08% | 0.64% | +26.8% | +95.8% | 25.0% | -25.7% | 0.87 | $123.9B | 72.7 | B |
| 12 SOXQInvesco PHLX Semiconductor ETF | Technology | 0.19% | 0.25% | +83.0% | +187.0% | 42.8% | -39.4% | 1.82 | $2.8B | 72.6 | B |
| 13 FHLCFidelity MSCI Health Care Index ETF | Healthcare | 0.08% | 1.32% | +27.1% | +33.5% | 15.3% | -16.9% | 1.45 | $3.2B | 72.4 | B |
| 14 FENYFidelity MSCI Energy Index ETF | Energy | 0.08% | 2.63% | +37.2% | +48.9% | 21.0% | -21.5% | 1.54 | $1.7B | 70.9 | B |
| 15 VGTVanguard Information Technology Index Fund ETF Shares | Technology | 0.09% | 0.36% | +25.2% | +99.6% | 23.8% | -27.2% | 0.85 | $169.2B | 70.5 | B |
| 16 RWRState Street SPDR Dow Jones REIT ETF | Real Estate | 0.25% | 2.87% | +26.8% | +45.0% | 14.3% | -18.9% | 1.53 | $1.8B | 70.4 | B |
| 17 KBWBInvesco KBW Bank ETF | Financial | 0.35% | 2.00% | +29.4% | +126.7% | 20.6% | -25.4% | 1.19 | $6.5B | 70.2 | B |
| 18 IAKiShares U.S. Insurance ETF | Financial | 0.38% | 2.54% | +22.0% | +74.5% | 15.9% | -11.6% | 1.07 | $422M | 70.2 | B |
| 19 IBBiShares Biotechnology ETF | Healthcare | 0.44% | 0.18% | +40.9% | +49.8% | 20.4% | -24.9% | 1.77 | $9.1B | 69.9 | B |
| 20 SCHHSchwab U.S. REIT ETF | Real Estate | 0.07% | 2.79% | +20.0% | +39.2% | 14.0% | -17.8% | 1.07 | $11.1B | 69.7 | B |
| 21 XPHState Street SPDR S&P Pharmaceuticals ETF | Healthcare | 0.35% | 0.35% | +61.3% | +65.0% | 22.6% | -23.6% | 2.50 | $428M | 69.6 | B |
| 22 AMLPAlerian MLP ETF | Energy | 1.01% | 7.76% | +21.0% | +69.5% | 12.6% | -14.3% | 1.27 | $12.2B | 69.4 | B |
| 23 PSIInvesco Semiconductors ETF | Technology | 0.56% | 0.15% | +96.1% | +161.0% | 48.8% | -41.1% | 1.87 | $3.1B | 68.7 | B |
| 24 FTECFidelity MSCI Information Technology Index ETF | Technology | 0.08% | 0.35% | +25.6% | +101.4% | 23.9% | -27.3% | 0.86 | $21.0B | 68.6 | B |
| 25 PPHVanEck Pharmaceutical ETF | Healthcare | 0.36% | 1.97% | +31.0% | +51.0% | 18.2% | -18.1% | 1.42 | $879M | 68.3 | B |
| 26 IYEiShares U.S. Energy ETF | Energy | 0.38% | 1.36% | +36.5% | +47.2% | 20.6% | -20.4% | 1.53 | $1.5B | 67.9 | B |
| 27 XSDState Street SPDR S&P Semiconductor ETF | Technology | 0.35% | 0.09% | +66.6% | +107.0% | 44.7% | -41.2% | 1.38 | $3.5B | 67.8 | B |
| 28 COPXGlobal X Copper Miners ETF | Materials | 0.65% | 2.51% | +75.1% | +101.6% | 45.7% | -39.7% | 1.53 | $7.2B | 67.2 | B |
| 29 IYWiShares U.S. Technology ETF | Technology | 0.38% | 0.01% | +25.6% | +108.6% | 23.4% | -26.5% | 0.88 | $25.4B | 67.1 | B |
| 30 ITAiShares U.S. Aerospace & Defense ETF | Industrials | 0.38% | 0.44% | +19.9% | +109.9% | 22.5% | -15.8% | 0.66 | $14.4B | 67.0 | B |
| 31 XLIState Street Industrial Select Sector SPDR ETF | Industrials | 0.08% | 0.68% | +15.8% | +69.4% | 16.9% | -18.5% | 0.64 | $34.0B | 66.4 | B |
| 32 IGMiShares Expanded Tech Sector ETF | Technology | 0.39% | 0.14% | +26.2% | +121.5% | 24.0% | -26.4% | 0.89 | $10.7B | 66.1 | B |
| 33 IYHiShares U.S. Healthcare ETF | Healthcare | 0.38% | 4.14% | +24.4% | +30.1% | 15.8% | -17.9% | 1.23 | $3.2B | 65.8 | B |
| 34 VNQVanguard Real Estate Index Fund ETF Shares | Real Estate | 0.13% | 3.30% | +15.8% | +35.4% | 14.0% | -17.4% | 0.78 | $71.3B | 65.7 | B |
| 35 REZiShares Residential and Multisector Real Estate ETF | Real Estate | 0.48% | 1.99% | +23.0% | +45.6% | 15.6% | -15.8% | 1.16 | $875M | 64.9 | C |
| 36 XLFState Street Financial Select Sector SPDR ETF | Financial | 0.08% | 1.01% | +8.5% | +69.6% | 14.8% | -15.5% | 0.23 | $51.4B | 64.5 | C |
| 37 KREState Street SPDR S&P Regional Banking ETF | Financial | 0.35% | 2.14% | +26.1% | +71.3% | 23.0% | -28.2% | 0.92 | $4.7B | 63.3 | C |
| 38 GDXVanEck Gold Miners ETF | Materials | 0.51% | 0.84% | +40.9% | +160.3% | 48.3% | -38.9% | 0.74 | $22.8B | 63.1 | C |
| 39 XLUState Street Utilities Select Sector SPDR ETF | Utilities | 0.08% | 4.28% | +10.4% | +51.8% | 15.0% | -15.5% | 0.36 | $23.1B | 62.0 | C |
| 40 RINGiShares MSCI Global Gold Miners ETF | Materials | 0.39% | 1.40% | +44.2% | +193.1% | 48.5% | -38.6% | 0.81 | $2.2B | 61.8 | C |
| 41 KBEState Street SPDR S&P Bank ETF | Financial | 0.35% | 2.15% | +23.6% | +80.9% | 21.3% | -26.0% | 0.87 | $1.5B | 61.6 | C |
| 42 XLPState Street Consumer Staples Select Sector SPDR ETF | Consumer Staples | 0.08% | 1.99% | +11.3% | +25.7% | 14.0% | -12.0% | 0.45 | $13.6B | 61.6 | C |
| 43 SILJAmplify Junior Silver Miners ETF | Materials | 0.69% | 2.14% | +59.8% | +172.2% | 58.2% | -41.1% | 0.94 | $3.4B | 61.6 | C |
| 44 GDXJVanEck Junior Gold Miners ETF | Materials | 0.52% | 2.70% | +47.0% | +184.8% | 53.6% | -41.3% | 0.78 | $7.1B | 61.5 | C |
| 45 SILGlobal X Silver Miners ETF | Materials | 0.65% | 1.31% | +50.6% | +194.4% | 53.2% | -39.4% | 0.86 | $4.2B | 61.4 | C |
| 46 VFHVanguard Financials Index Fund ETF Shares | Financial | 0.09% | 1.77% | +9.0% | +72.0% | 15.1% | -17.3% | 0.27 | $13.8B | 61.3 | C |
| 47 VISVanguard Industrials Index Fund ETF Shares | Industrials | 0.09% | 0.63% | +15.8% | +67.8% | 17.9% | -20.8% | 0.60 | $9.0B | 61.2 | C |
| 48 VDCVanguard Consumer Staples Index Fund ETF Shares | Consumer Staples | 0.09% | 2.13% | +10.6% | +27.9% | 13.7% | -11.4% | 0.41 | $9.2B | 61.1 | C |
| 49 JXIiShares Global Utilities ETF | Utilities | 0.39% | 2.41% | +16.0% | +57.8% | 13.1% | -14.7% | 0.84 | $323M | 60.3 | C |
| 50 VPUVanguard Utilities Index Fund ETF Shares | Utilities | 0.09% | 2.22% | +9.9% | +50.8% | 14.7% | -15.7% | 0.33 | $10.8B | 60.0 | C |
| 51 XMEState Street SPDR S&P Metals & Mining ETF | Materials | 0.35% | 0.32% | +28.5% | +92.3% | 36.7% | -30.5% | 0.64 | $4.4B | 60.0 | C |
| 52 XLREState Street Real Estate Select Sector SPDR ETF | Real Estate | 0.08% | 3.19% | +13.1% | +36.0% | 14.3% | -16.6% | 0.56 | $8.1B | 59.5 | C |
| 53 IHFiShares U.S. Healthcare Providers ETF | Healthcare | 0.38% | 0.94% | +35.4% | +13.0% | 20.8% | -29.9% | 1.46 | $1.2B | 59.5 | C |
| 54 IEOiShares U.S. Oil & Gas Exploration & Production ETF | Energy | 0.38% | 2.12% | +37.4% | +39.5% | 25.9% | -31.5% | 1.25 | $516M | 59.5 | C |
| 55 XARState Street SPDR S&P Aerospace & Defense ETF | Industrials | 0.35% | 0.28% | +17.6% | +116.6% | 28.7% | -19.7% | 0.44 | $6.5B | 59.4 | C |
| 56 FRELFidelity MSCI Real Estate Index ETF | Real Estate | 0.08% | 3.29% | +15.6% | +35.4% | 14.0% | -17.5% | 0.76 | $1.5B | 59.3 | C |
| 57 CIBRFirst Trust NASDAQ Cybersecurity ETF | Technology | 0.58% | 0.44% | +20.1% | +94.8% | 25.9% | -22.0% | 0.58 | $13.8B | 59.0 | C |
| 58 PAVEGlobal X U.S. Infrastructure Development ETF | Industrials | 0.47% | 0.73% | +18.9% | +74.3% | 20.4% | -26.2% | 0.68 | $14.6B | 59.0 | C |
| 59 XOPState Street SPDR S&P Oil & Gas Exploration & Production ETF | Energy | 0.35% | 0.84% | +34.5% | +29.0% | 28.5% | -35.0% | 1.03 | $2.9B | 58.7 | C |
| 60 OIHVanEck Oil Services ETF | Energy | 0.35% | 1.31% | +45.9% | +13.2% | 29.6% | -43.8% | 1.38 | $2.0B | 58.7 | C |
| 61 FIDUFidelity MSCI Industrials Index ETF | Industrials | 0.08% | 0.90% | +15.7% | +67.6% | 18.0% | -20.5% | 0.59 | $2.4B | 58.7 | C |
| 62 FNCLFidelity MSCI Financials Index ETF | Financial | 0.08% | 1.65% | +9.1% | +72.3% | 15.0% | -17.3% | 0.27 | $2.2B | 58.6 | C |
| 63 IYFiShares U.S. Financials ETF | Financial | 0.38% | 0.79% | +10.3% | +78.3% | 14.7% | -16.6% | 0.36 | $3.9B | 58.3 | C |
| 64 FSTAFidelity MSCI Consumer Staples Index ETF | Consumer Staples | 0.08% | 2.21% | +10.4% | +27.6% | 13.7% | -11.4% | 0.39 | $1.4B | 58.0 | C |
| 65 FUTYFidelity MSCI Utilities Index ETF | Utilities | 0.08% | 2.59% | +10.0% | +51.0% | 14.8% | -15.6% | 0.34 | $2.3B | 57.7 | C |
| 66 XLCState Street Communication Services Select Sector SPDR ETF | Communication Services | 0.08% | 1.33% | +3.6% | +68.5% | 14.5% | -18.0% | -0.10 | $22.3B | 57.7 | C |
| 67 IYKiShares US Consumer Staples ETF | Consumer Staples | 0.38% | 3.18% | +14.1% | +22.4% | 13.7% | -11.9% | 0.66 | $1.3B | 57.6 | C |
| 68 IYMiShares U.S. Basic Materials ETF | Materials | 0.38% | 1.00% | +22.8% | +38.0% | 19.9% | -23.6% | 0.90 | $1.4B | 57.5 | C |
| 69 IYRiShares U.S. Real Estate ETF | Real Estate | 0.38% | 1.74% | +14.0% | +33.8% | 14.1% | -16.9% | 0.64 | $4.7B | 56.5 | C |
| 70 VOXVanguard Communication Services Index Fund ETF Shares | Communication Services | 0.09% | 0.48% | +8.3% | +74.1% | 16.9% | -21.1% | 0.19 | $5.9B | 56.3 | C |
| 71 HACKAmplify Cybersecurity ETF | Technology | 0.60% | 0.06% | +20.3% | +101.5% | 27.3% | -21.9% | 0.56 | $2.6B | 56.0 | C |
| 72 XLBState Street Materials Select Sector SPDR ETF | Materials | 0.08% | 2.66% | +15.8% | +30.9% | 17.7% | -23.2% | 0.61 | $8.2B | 55.8 | C |
| 73 KXIiShares Global Consumer Staples ETF | Consumer Staples | 0.39% | 2.38% | +12.2% | +24.1% | 13.0% | -11.3% | 0.55 | $1.0B | 55.5 | C |
| 74 IYTiShares Transportation Average ETF | Industrials | 0.38% | 2.17% | +21.8% | +37.0% | 20.5% | -26.4% | 0.82 | $2.3B | 54.7 | C |
| 75 LITGlobal X Lithium & Battery Tech ETF | Materials | 0.75% | 0.64% | +55.4% | +7.2% | 34.3% | -51.5% | 1.47 | $1.8B | 54.6 | C |
| 76 IDUiShares U.S. Utilities ETF | Utilities | 0.38% | 1.98% | +8.9% | +52.1% | 14.3% | -14.8% | 0.28 | $1.4B | 54.3 | C |
| 77 FCOMFidelity MSCI Communication Services Index ETF | Communication Services | 0.08% | 1.01% | +7.6% | +72.8% | 16.8% | -21.2% | 0.16 | $1.7B | 54.1 | C |
| 78 VNQIVanguard Global ex-U.S. Real Estate Index Fund ETF Shares | Real Estate | 0.12% | 4.81% | +5.0% | +27.4% | 13.8% | -16.4% | -0.00 | $3.7B | 52.7 | C |
| 79 VAWVanguard Materials Index Fund ETF Shares | Materials | 0.09% | 1.39% | +14.3% | +29.5% | 18.6% | -23.2% | 0.50 | $4.5B | 52.4 | C |
| 80 IYJiShares U.S. Industrials ETF | Industrials | 0.38% | 0.56% | +10.3% | +54.0% | 16.0% | -19.7% | 0.33 | $1.9B | 51.6 | C |
| 81 XTNState Street SPDR S&P Transportation ETF | Industrials | 0.35% | 0.64% | +27.4% | +32.6% | 27.9% | -33.7% | 0.80 | $367M | 51.3 | C |
| 82 ARKGARK Genomic Revolution ETF | Healthcare | 0.75% | — | +46.0% | +10.4% | 43.0% | -51.7% | 0.95 | $1.7B | 50.8 | C |
| 83 JETSU.S. Global Jets ETF | Consumer Discretionary | 0.60% | 0.70% | +26.5% | +54.1% | 32.9% | -35.2% | 0.65 | $959M | 50.8 | C |
| 84 IAIiShares U.S. Broker-Dealers & Securities Exchanges ETF | Financial | 0.38% | 1.17% | +6.7% | +98.2% | 20.2% | -23.1% | 0.08 | $1.3B | 49.5 | D |
| 85 FMATFidelity MSCI Materials Index ETF | Materials | 0.08% | 1.43% | +14.2% | +29.2% | 18.6% | -23.2% | 0.50 | $624M | 49.2 | D |
| 86 ICLNiShares Global Clean Energy ETF | Energy | 0.39% | 0.90% | +23.5% | +2.4% | 30.2% | -40.8% | 0.61 | $2.9B | 47.3 | D |
| 87 XLYState Street Consumer Discretionary Select Sector SPDR ETF | Consumer Discretionary | 0.08% | 1.04% | -0.5% | +35.3% | 19.3% | -26.0% | -0.29 | $22.6B | 45.9 | D |
| 88 MOOVanEck Agribusiness ETF | Materials | 0.56% | 1.33% | +15.6% | +6.2% | 14.2% | -26.6% | 0.75 | $944M | 45.8 | D |
| 89 SKYYFirst Trust Cloud Computing ETF | Technology | 0.60% | — | +10.3% | +77.4% | 29.1% | -31.8% | 0.18 | $2.7B | 45.4 | D |
| 90 XRTState Street SPDR S&P Retail ETF | Consumer Discretionary | 0.35% | 0.57% | +12.9% | +41.5% | 20.9% | -25.6% | 0.38 | $381M | 44.4 | D |
| 91 VCRVanguard Consumer Discretionary Index Fund ETF Shares | Consumer Discretionary | 0.09% | 0.72% | +1.5% | +36.3% | 19.4% | -27.4% | -0.18 | $6.8B | 43.8 | D |
| 92 REMiShares Mortgage Real Estate Capped ETF | Real Estate | 0.48% | 8.79% | +7.7% | +21.6% | 17.2% | -20.5% | 0.16 | $548M | 42.6 | D |
| 93 MORTVanEck Mortgage REIT Income ETF | Real Estate | 0.43% | 12.75% | +6.1% | +21.4% | 17.0% | -20.5% | 0.07 | $400M | 42.1 | D |
| 94 FDNFirst Trust Dow Jones Internet Index Fund | Technology | 0.49% | — | -1.8% | +61.2% | 20.3% | -25.0% | -0.34 | $5.0B | 42.1 | D |
| 95 FDISFidelity MSCI Consumer Discretionary Index ETF | Consumer Discretionary | 0.08% | 0.72% | +1.5% | +36.6% | 19.3% | -27.4% | -0.18 | $1.7B | 41.7 | D |
| 96 IYCiShares US Consumer Discretionary ETF | Consumer Discretionary | 0.38% | 0.42% | -1.4% | +42.7% | 15.2% | -21.6% | -0.42 | $1.2B | 40.7 | D |
| 97 NLRVanEck Uranium and Nuclear ETF | Materials | 0.52% | 2.73% | -11.2% | +84.1% | 43.5% | -37.5% | -0.37 | $4.2B | 39.5 | D |
| 98 URAGlobal X Uranium ETF | Materials | 0.69% | 4.79% | -4.1% | +94.5% | 51.9% | -39.3% | -0.18 | $6.0B | 39.1 | D |
| 99 BUGGlobal X Cybersecurity ETF | Technology | 0.50% | 0.03% | +4.2% | +52.1% | 32.9% | -37.7% | -0.02 | $1.2B | 38.8 | D |
| 100 XHBState Street SPDR S&P Homebuilders ETF | Consumer Discretionary | 0.35% | 0.68% | -1.1% | +28.5% | 28.4% | -30.5% | -0.21 | $1.6B | 36.1 | D |
| 101 IGViShares Expanded Tech-Software Sector ETF | Technology | 0.39% | 0.02% | -18.1% | +31.7% | 29.1% | -36.6% | -0.80 | $13.5B | 35.4 | D |
| 102 ITBiShares U.S. Home Construction ETF | Consumer Discretionary | 0.38% | 0.62% | -3.5% | +14.3% | 29.6% | -33.4% | -0.29 | $2.6B | 34.3 | F |
| 103 XSWState Street SPDR S&P Software & Services ETF | Technology | 0.35% | 0.01% | -5.6% | +33.6% | 29.8% | -33.8% | -0.36 | $402M | 32.7 | F |
| 104 IHIiShares U.S. Medical Devices ETF | Healthcare | 0.38% | 0.49% | -12.5% | -0.7% | 19.9% | -26.6% | -0.88 | $3.0B | 32.5 | 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?
IYZ currently ranks highest of the 104 sector funds tracked, with a score of 77.0 (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.