S&P 500 Index Sector Performance (as of 06/30/17)
Chart of the Week for July 14, 2017 - July 20, 2017
Similar to the stock market as a whole, returns for individual sectors of the stock market experience fluctuations. For example, a sector may outperform other sectors for a period of time and then underperform in subsequent periods. The chart above compares the performance of the Standard & Poor's 500 Index ("S&P 500"), including dividends, to its 11 underlying sectors for the twelve month periods ended June 30, 2017 ("current" period) and June 30, 2016 ("prior" period). The S&P 500 is an index consisting of 500 companies representing larger capitalization stocks traded in the U.S. and is a benchmark commonly used to measure the performance of the U.S. stock market.
The S&P 500 gained 17.90% for the current period. Eight of the 11 sectors posted positive returns, with six of those eight sectors posting double digit positive returns. In comparison, the S&P 500 gained 3.99% for the prior period, and seven of the 11 sectors posted positive returns.
The four sectors that outperformed the S&P 500 in the current period were lead by Financials (35.37%), Information Technology (33.89%), Industrials (22.27%), and Materials (18.59%). The sectors that underperformed the S&P 500 and still produced positive returns were Consumer Discretionary (16.9%), Healthcare (12.47%), Consumer Staples (3.06%), and Utilities (2.47%). Real Estate (-0.42%), Energy (-4.14%),and Telecom Services (-11.71%) were the only sectors with negative returns in the current period. The results of the U. S. Presidential Election in November 2016 brought hope for policy and tax changes and positive economic indicators have bolstered many sectors returns over the last year.
Market and sector returns fluctuate from year to year depending upon a variety of factors, which are very difficult to forecast. Therefore, it is important to understand the principles of investing before establishing an investment strategy to help ensure that it is consistent with your personal goals, risk tolerance, and time horizon.
Posted by: sarah_oz@yahoo.com
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