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this is what I did. I own the sectors equi-weight. I wasn't sure if it will outperform, but it helps me sleep better at night.
Jan 12 02:13 am
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All Comments by bigmoney »Passive Sector Investing vs. Passive Index Investing [View article]
There are also iShares global sectors, which are cool, but the expense ratio is around 0.48%, quite a bit higher, and many are thinly traded. From what I understand, the SPY stocks derive much of their profits overseas, so they are globally diversified. Hopefully. You could always hedge, and get both iShares and SPDRs.
I would like to see the equivalent SPDR sectors for mid-cap and small-cap. Otherwise, buying mid/small-cap index fund gets you a big helping of Financials. For better or worse.