Sector Fund - University of Arkansas

Report
Travis Bolton, Lauren Pendleton, Jordan Remagen
Sector Fund
A sector fund is a stock mutual, exchange- traded or
closed-end fund that invests solely in businesses that
operate in a particular industry or sector of the
economy. Because the holdings of this type of fund are
in the same industry, there is an inherent lack of
diversification associated with these funds.
Sector Fund
Examples include gold funds (gold mining stock),
technology funds, and utility funds.
Sector Fund
Example Fund:
Technology Select Sector SPDR
(XLK)
Sector Fund
TOP 10 HOLDINGS ( 62.87% OF TOTAL ASSETS)
Company
Symbol
% Assets
Apple Inc.
AAPL
8.3
AT&T Inc
T
7.23
Cisco Systems, Inc.
CSCO
6.02
Google Inc.
GOOG
6.53
Hewlett-Packard Co
HPQ
4.43
Intel Corporation
INTC
4.2
International Business Machines
IBM
7.51
Microsoft Corporation
MSFT
10.29
Oracle Corporation
ORCL
4.22
Verizon Communications Inc
VZ
4.14
Sector Fund
Sector Fund
 Investment Objective
 To provide investment results that, before expenses,
correspond generally to the price and yield performance
of publicly traded equity securities of companies in the
Technology Select Index
Sector Fund
 Recent Stock Price = 21.49
 Net Asset Value (NAV) = 21.79
Sector Fund
 Principle Risk
 Market or economic factors impacting technology
companies and companies that rely heavily on
technology advances could have a major effect on the
value of the Fund’s investments.
 The value of the fund is particularly vulnerable to rapid
changes in technology product cycles.
 The technology sector may face dramatic and often
unpredictable changes in growth rates and competition
for the services of qualified personnel.

similar documents