Below is an updated look at where S&P 500 sector weightings stand as of August 14th, 2017. The Technology sector’s weighting remains above 23% at 23.15%. That’s just 22 basis points below its multi-year high of 23.37% set during the week of June 9th, 2017. Financials and Health Care are battling it out in second and third place with weightings of 14.52% and 14.25%, respectively.
Consumer Discretionary ranks fourth at 12.23%, Industrials is fifth at 10.17%, and Consumer Staples is sixth at 8.69%. Consumer Staples just dipped to its lowest weighting since March 2002!
Below is a look at S&P 500 sector weightings going back to 1990. This allows you to see how things have shifted over the years. In the early 90s prior to the Tech bubble, the economy was much more evenly distributed. In early 1990, Industrials was the largest sector of the market at 14.72%. That’s 8.5 percentage points below Tech’s weighting now. In 1990, Technology was actually the second smallest in the S&P 500 with a weighting of 6.34%! How times have changed.
The charts below break out the path of each sector’s S&P 500 weighting over time. The red line in each chart represents the sector’s average weighting over the entire time frame, so you can see which sectors are currently the furthest above or below their long-term averages. Technology and Health Care are the only two sectors currently well above their long-term averages. Consumer Staples, Energy, Industrials, Materials, Telecom and Utilities are all well below their long-term averages.