Below is an updated snapshot of S&P 500 sector weightings as of mid-year 2019. As shown, the Technology sector makes up the largest slice of the pie with a weighting of 21.48%. Health Care ranks as the second largest sector of the market at 14.20%, followed by Financials at 13.07%. The fact that technology and two service-oriented sectors making up nearly 50% of the index shows how much the US economy has shifted over the years. After the “big three” of Tech, Health Care, and Financials, we move down to Consumer Discretionary, Communication Services, and Industrials, which are all right around 10%. Consumer Staples has a weighting of 7.27%, and Energy is all the way down to 5.05% after years of losing share. Utilities, Real Estate, and Materials combine to add up to roughly 9% of the index, so these three sectors are basically immaterial at this point.
Below is a chart showing how much weightings changed in the first half of 2019. The Technology sector gained 1.33 percentage points while Health Care lost 1.23 percentage points, so the gap between the biggest sector (Tech) and the 2nd biggest sector (Health Care) widened by more than 2.5. Consumer Discretionary, Industrials, Real Estate, Materials, and Communication Services all gained share in the first half as well, while Energy, Financials, Consumer Staples, and Utilities all lost share along with Health Care. Start a two-week free trial to Bespoke Institutional for a closer look at S&P 500 sector weightings and access to ALL of our most actionable equity market research.