ETFs Offer a Cheaper Way to Get Aggressive

Sector funds that concentrate on stocks in a particular industry have been around for a long time, but a new breed of sector funds that trade like stocks offers a promising strategy for the aggressive investor.

Some of the early sector funds, such as the (PRNEX Quote) T. Rowe Price New Era fund, invest in utilities or energy or precious metals with the notion that these sectors might provide a buffer against the overall stock market in a downturn.

Fidelity Investments gave sector funds a twist in 1981 when it introduced its sector portfolios designed to attract investors who anticipate a period of outperformance in a particular sector. ...