S&P 500 Sector Performance

A detailed look at the S&P 500 Index’s performance over the past decade, broken down by its 11 sectors.

Observations 

  • IT dominated 2017 with its over performance translating into top spots on the 3 and 5 year numbers; driven in large part by strong earnings growth
  • The pending reclassification of GICS in September will have a material effect upon the characteristics of future sector performance:
    • Keep an eye on IT throughout the year as it looks like it will  lose some of its large growth names of the past
    • Telecom is expected to reflect more growth as popular social media sights are moved from IT over to Telecom
  • Laggards for 2017 have continued into 2018 with Telecom, Consumer Staples, Real Estate and Energy underperforming throughout the first quarter
  • Information Technology and Consumer Discretionary have continued to lead since 2017
  • Financials performed well in 2016 & 2017 as economy improved and monetary policy moved toward “normalcy”
  • Industrials, thought to have received a boost from the new tax law have been battered by talks of tariffs and trade wars
Disclosures 

Indices are unmanaged, do not reflect fees and expenses, and are not available for direct investment. 

This commentary often expresses opinions about the direction of market, investment sector and other trends. The opinions should not be considered predictions of future results. The information contained in this report is based on sources believed to be reliable, but is not guaranteed and not necessarily complete.