What Are Sector ETFs & How do they Work on Hord?

By Melusine | Hord App | 14 May 2021

By Bart Rovers

Bart Rovers


We are very excited to share with you today a new kind of Hord ETF: Sector ETFs


What is a sector ETF in traditional finance?

An ETF, or exchange-traded fund, is a pooled investment vehicle that tracks a basket of assets like an index fund. An ETF is tradeable in itself like a common stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.

A sector ETF is an ETF that invests specifically in stocks and securities of a particular industry or sector. For instance, a sector ETF may track a representative basket of energy stocks or big tech stocks.

Sector ETFs have become popular among investors and can be used for hedging and speculating. They allow investors to get exposure to an entire sector by investing in a single asset. Assets in a sector ETF are passively managed based on an underlying index.

The benefits of sector ETFs

  • A Sector ETF tracks a basket of representative assets that are specific to an industry sector rather than the broad market
  • Sector ETFs can be used to invest in an entire industry without having to piece together the individual assets in that sector
  • Sector ETFs allow for cheap and automatic rebalancing of an investor’s portfolio

What is a Hord sector ETF?

A Sector ETF on Hord works just like a sector ETF in TradFi but now in DeFi. The ETF tokens represent the value of the underlying assets of a certain sector within the industry and are an asset in itself that can be traded on the open market.EA

Examples of sector indices to be featured as sector ETFs on Hord are:

  • Exchange tokens
  • DEX tokens
  • DeFi
  • CeFi
  • Protocols
  • Oracles

And many more…

The exchange token ETF, for example, will hold different exchange tokens, like BNB, HT, FTT, CRO, OKB, KCS and GT, in a ratio that is based on their relative size in terms of market capitalization.


An investor that believes in the long-term benefit of investing in exchange tokens, can easily and affordably make a single purchase of Hord’s exchange token sector ETF, with almost no fees.

This is just one example of many more to come.

The benefits of Hord sector ETFs

  • Instant diversification: 
    Instead of betting all your money on one horse you are perfectly diversified within your sector of choice.
  • Ease of use: 
    No need to purchase lots of different tokens and perform difficult calculations in order to build a portfolio.
  • Almost no fees: 
    Save an enormous amount of money on fees by purchasing a single ETF token, instead of 5, 10, or even upwards of 50 different tokens.
  • Automatic rebalancing: 
    You never have to rebalance your portfolio to accurately represent current market conditions.

How do Sector ETFs benefit HORD token holders?

Since Sector ETFs represent a large portion of the market in a very convenient manner and have a number of additional benefits compared to single asset investing, they enjoy a massive trading volume. And since Hord ETFs are traded on Hord’s orderbook DEX. They will be one of the biggest drivers of activity on the Hord platform

And activity means token burning…

Every transaction on the Hord DEX burns HORD tokens forever. Diminishing supply while at the same time increasing demand for the token. These deflationary tokenomics are what drive the Hord platform and HORD token.


Sector ETFs are an amazing way for investors to reduce risk, increase diversified exposure and mitigate costs. They will generate an incredible amount of volume on the Hord orderbook DEX. This will burn HORD tokens constantly and increase the value of the asset.

Keep up with Hord

Website: Hord.App

The most powerful and fully decentralized crypto ETF platform. Hord paves the way for the democratization of Assets Under Management and accelerates the move to DeFi from traditional finance.

How do you rate this article?



Writer about cybersecurity, blockchain and digital marketing

Hord App
Hord App

HORD enables crypto champions to tokenize and monetize their influence and empowers crypto lovers to upgrade from following news and tips to capitalize on information flow. With Hord revolutionary dynamic ETFs you are one click away from trading and investing like the pros.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.