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REDDIT

Looking for ETF/Stock Recommendations: Defense, Energy, Healthcare & Financials

N
Dec 30, 2025 · 05:06

I'm rebalancing my portfolio (currently tech-heavy at \~70%) and looking to diversify into 4 specific sectors for long-term growth. I'd love to hear your thoughts on the best ETFs or individual stocks in each category.

My target allocation:

* Defense & Aerospace: 12.5%
* Energy: 12.5%
* Healthcare: 12.5%
* Financials: 12.5%

What I'm considering so far:

* Defense & Aerospace: ITA (iShares U.S. Aerospace & Defense) ​
* Energy: XLE (Energy Select Sector SPDR) - lowest fee at 0.08%, broad exposure
* Healthcare: XLV (Health Care Select Sector SPDR) - covers pharma, biotech, services
* ​Financials: XLF (Financial Select Sector SPDR) - banks, insurance, diversified

**Questions for the community:**

1. Are these the best "set and forget" ETFs for each sector, or are there better alternatives?
2. Any individual stocks in these sectors you think will outperform the ETFs over 3-5 years?
3. Any red flags I'm missing with this allocation?