Below is an updated look at sector weightings in the S&P 500. As shown, Technology remains the largest sector in the index at 20.8%, while the Financial sector has moved back into second at 14.6%. Health Care ranks third at 13.7%, followed by Consumer Discretionary (12.3%), Industrials (10.5%), and Consumer Staples (9.3%). Energy ranks seventh at 7.5%, and the final four sectors (Utilities, Materials, Real Estate, Telecom) all have weightings between 2.5% and 3.1%.
What’s most interesting about sector weightings is their changes over time. We post on this topic from time to time, but today we just want to show how weightings have changed since Trump was elected President on November 8th. As shown, the Financial sector has seen its weighting in the S&P 500 surge by 1.23 percentage points. The Industrials sector has seen the next biggest jump at 0.39 percentage points, followed by Energy (0.26) and Consumer Discretionary (0.10).
On the downside, Real Estate, Utilities, Health Care, Technology, and Consumer Staples have all lost market share since the election, with Consumer Staples losing the most at 0.71 percentage points. Due to its “growthy” nature, we’re wondering if Technology will be able to hold above 20% for much longer.