sector investing

According to S&P, investors who reinvested in the previous year's three best-performing sectors outperformed the S&P 500 benchmark 70% of the time. But those who invested in the prior year's three worst-performing sectors beat the S&P benchmark only 40% of the time.

The market's recent volatility might make defensive investing seem appealing. But S&P Equity Research analysts caution that focusing too much on defensive sectors could have negative repercussions as well. Here's how to play smarter defense.

Buying a single stock ties your fate to the ups and downs of one company. You can moderate this risk but still aim for your target by investing in an exchange-traded fund focused on a particular sector. With ETFs for just about every sector, how do you begin to choose? We'll tell you how.

It's always worthwhile to get insights from seasoned money managers. In particular, it's good to know which sectors they are buying in a difficult market. And we're in a difficult market right now, when many observers expect a correction. Ron Baron is CEO and chief investment officer of the Baron...