Podcast: A Deep Dive on Sector Investing
What are the sectoral flows into and out of the Global Industry Classification Standards, or GICS, telling us? In this episode, special guest Michael Arone, ETF Strategist Bipan Rai, and your host, Erika Toth, delve into the leaders and laggards. They also look back at historical trends and ahead for potential opportunities.
Erika Toth is a Director of Institutional and Advisory for Eastern Canada at BMO Global Asset Management (BMO GAM). She is joined on the podcast by Bipan Rai, Head of ETF Strategy , BMO GAM, and Michael Arone, Chief Investment Strategist, Managing Director, State Street Global Advisors. The episode was recorded live on Wednesday. February 19, 2025.
ETFs mentioned:
Alpha: A measure of performance often considered the active return on an investment. It gauges the performance of an investment against a market index or benchmark which is considered to represent the market’s movement as a whole. The excess return of an investment relative to the return of a benchmark index is the investment’s alpha.
Beta: A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
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Sector ETF products are also subject to sector risk and non-diversification risk, which generally will result in greater price fluctuations than the overall market.
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