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🔬 Sector Exposure X-Ray

See exactly where your money is invested. Are you 40% in tech? 60%? Visualize your sector allocation and identify dangerous concentration risks before the next crash.

Understanding Sector Exposure

Most investors think they're diversified because they own "different" ETFs. But SPY + QQQ + VGT? You're probably 50%+ in technology without realizing it. When tech crashes, your whole portfolio crashes.

The 11 Market Sectors

The stock market is divided into 11 GICS sectors:

💻 Technology

AAPL, MSFT, NVDA

High growth, high volatility

🏦 Financials

JPM, BAC, WFC

Sensitive to interest rates

⚕️ Healthcare

UNH, JNJ, LLY

Defensive, steady growth

🛍️ Consumer Discretionary

AMZN, TSLA, HD

Economic cycle dependent

📡 Communication Services

GOOGL, META, NFLX

Ad revenue driven

🏭 Industrials

CAT, UPS, BA

Economy indicators

🥫 Consumer Staples

WMT, PG, KO

Defensive, recession-resistant

⚡ Energy

XOM, CVX, COP

Commodity price dependent

🔌 Utilities

NEE, DUK, SO

Stable, dividend-focused

🏢 Real Estate

AMT, PLD, CCI

Interest rate sensitive

🏗️ Materials

LIN, SHW, APD

Cyclical, commodity-driven

⚠️ The Tech Trap

Example: You own SPY (26% tech), QQQ (50% tech), and VGT (100% tech). If you weight them equally, you're 59% exposed to technology! When the 2022 tech crash happened, you lost way more than the "diversified" market.

Healthy vs Dangerous Allocation

✅Well-Diversified Portfolio

  • ✓No single sector > 30%
  • ✓At least 6-7 sectors represented
  • ✓Mix of growth (tech) and defensive (healthcare, staples)
  • ✓Example: 25% tech, 15% healthcare, 15% financials, 10% consumer, etc.

🚨Dangerous Concentration

  • ✗One sector > 50% (you'll die in sector crashes)
  • ✗Missing defensive sectors entirely (no healthcare, staples, utilities)
  • ✗Heavy tech + discretionary without staples (crashes hurt more)
  • ✗Example: 60% tech, 20% consumer discretionary = 2022 bloodbath

Common Portfolio Mistakes

❌Mistake 1: "Nasdaq Diversification"

The trap: Holding SPY + QQQ thinking you're diversified.

Reality: Both are tech-heavy (26% and 50%), so you're just doubling down on tech risk.

⚠️Mistake 2: Sector ETF Stacking

The trap: Owning XLK (tech sector) + VGT (tech sector) + QQQ (50% tech)

Reality: Massive tech concentration with zero benefit. You're paying 3 expense ratios for the same exposure.

🔍Mistake 3: Ignoring Individual Stock Overlap

The trap: SPY has AAPL at 7%. QQQ has AAPL at 9%. VGT has AAPL at 20%.

Reality: Combined? You might have 10%+ of your entire portfolio in ONE STOCK. When AAPL drops 20%, you feel it everywhere.

💡 Pro Strategy

The Barbell Approach:

  • • 40% Growth sectors (Tech, Consumer Discretionary)
  • • 40% Defensive sectors (Healthcare, Staples, Utilities)
  • • 20% Cyclical/Value (Financials, Industrials, Energy)

This gives you upside in bull markets but cushion in crashes.

How to Use This Tool

  1. Select your ETFs: Add all the ETFs you own or are considering
  2. Set portfolio weights: How much of each ETF do you own? (e.g., 50% SPY, 30% QQQ, 20% AGG)
  3. View sector breakdown: See your total exposure to each sector
  4. Identify risks: Red flags if any sector > 40% or missing defensive sectors
  5. Rebalance: Add/remove ETFs to achieve target allocation

Sector Rotation Strategies

Advanced investors rotate between sectors based on economic cycles:

📈

Early Recovery

Overweight: Financials, Industrials, Materials

Economy starting to grow, banks lending again

🚀

Mid Cycle

Overweight: Tech, Consumer Discretionary, Energy

Peak growth, consumers spending freely

⚡

Late Cycle

Overweight: Energy, Materials, Industrials

Inflation rising, commodity prices peaking

🛡️

Recession

Overweight: Utilities, Healthcare, Consumer Staples

Defensive sectors, people still need essentials

Want to See ETF Overlap Too?

Sector exposure + holdings overlap = complete portfolio X-ray

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