S&P 500 Sector Weightings; Wither Financials
Tuesday, October 18, 2011 at 02:59PM Below we highlight the current weightings in the S&P 500 for each of its ten sectors. As shown, the Technology sector is currently a fifth of the index, which shows just how important movements in tech stocks are on the overall market. The Financial sector, which used to hold the top position prior to the financial crisis, has whittled down to 13.41%. Industrials, Consumer Discretionary, Consumer Staples, Health Care and Energy rank 3rd through 7th and have weightings between 10.43% and 12.09%. Utilities, Materials and Telecom -- all with weightings in the 3s -- have little impact on the market regardless of what they're doing.
Below are charts showing each sector's historical weighting going back to 1990. In each chart, the red line represents the sector's average weighting over the entire period, making it easy to see where each sector currently stands versus its historical average. As shown, the Technology sector is currently well above its 20+ year average, while the Financial sector has really taken a big turn lower recently. The Industrials sector has also moved pretty significantly lower in 2011.
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