Do Sector Etfs Outperform Treasury Bills?

18 Pages Posted: 22 Aug 2022

See all articles by Gow-Cheng Huang

Gow-Cheng Huang

Tuskegee University

Kartono Liano

Mississippi State University

Abstract

Unlike individual stocks, more than 67% of sector ETFs have lifetime buy-and-hold returns that are higher than the T-bill rates.  Thus, the majority of sector ETFs outperform T-bills.  However, less than 26% of sector ETFs have lifetime buy-and-hold returns that are higher than SPY, an index ETF that is a proxy for the overall stock market.  Consequently, most sector ETFs underperform the market index.

Keywords: Sector ETFs, Treasury bills, Market index, performance

Suggested Citation

Huang, Gow-Cheng and Liano, Kartono, Do Sector Etfs Outperform Treasury Bills?. Available at SSRN: https://ssrn.com/abstract=4196830

Gow-Cheng Huang

Tuskegee University ( email )

1200 West Montgomery Road
Tuskegee Inst, AL 36088-1923
United States

Kartono Liano (Contact Author)

Mississippi State University ( email )

Mississippi State, MS 39762
United States

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