Sector ETFs, or Sector Exchange-Traded Funds, are investment funds that focus on specific sectors of the economy, such as technology, healthcare, or energy. They allow investors to buy a collection of stocks from companies within a particular sector, providing diversification and exposure to that area without needing to pick individual stocks. These ETFs are traded on stock exchanges like regular stocks, making them easy to buy and sell. By investing in Sector ETFs, investors can capitalize on trends within specific industries while managing risk, as they spread their investment across multiple companies rather than relying on a single one.