SECTOR FUNDS SINKING

September 16, 2008
Michael Sheehan

Physician's Money Digest, January15 2003, Volume 10, Issue 1

Sector funds, once the darlings ofintrepid investors, have lost most oftheir steam since the tech bubbleburst. Where investors chasing hotindustries once poured $70 billion ayear—mostly into technology andtelecom funds—they've been pullingout since 2001, taking about $18billion in cash with them. Some analyststhink that sector funds still havea place in your portfolio, however, ifyou can resist the temptation to getinto high-risk sectors. Look forfunds in more than 1 sector and targetthose that cover an industry'sbroad spectrum rather than a narrowniche. Some examples includeVanguard Health Care (800-635-1551) and T. Rowe Price FinancialServices (800-638-5660).