The series Spot the Sector analyses the 11 Global Industry Classification Standard (GICS) sectors and provides a comprehensive overview of each sector’s definition, performance trends, and composition.
The source of the cited official description of the 11 GICS can be found here.
The Communication Services Sector includes telecom, media, and entertainment firms.
Leaders like Meta, Alphabet, and Netflix dominate with a combined market cap of $4.36T, representing
81.44% of the sector index weight.
The Communication Services Sector includes companies that
facilitate communication and offer related content and information through various mediums. It
includes telecom and media & entertainment companies including producers of interactive
gaming products and companies engaged in content and information creation or distribution
through proprietary platforms.
The Consumer Discretionary Sector includes automobiles, household goods, leisure products,
and retailers sensitive to economic cycles. Key players like Amazon, Tesla, and Home Depot lead with a
combined market cap of $4.06T, representing 56.65% of the sector index weight.
The Consumer Discretionary Sector encompasses those
businesses that tend to be the most sensitive to economic cycles. Its manufacturing segment
includes automobiles & components, household durable goods, leisure products and textiles &
apparel. The services segment includes hotels, restaurants, and other leisure facilities. It also
includes distributors and retailers of consumer discretionary products.
The Consumer Staples Sector includes food, beverage, and tobacco producers, as well as non-durable household goods and personal product manufacturers. Leaders like Procter & Gamble, Costco, and Walmart hold a combined market cap of $2.51T, representing 55.27% of the sector index weight.
The Consumer Staples Sector comprises companies whose
businesses are less sensitive to economic cycles. It includes manufacturers and distributors of
food, beverages and tobacco and producers of non-durable household goods and personal
products. It also includes distributors and retailers of consumer staples products including food
& drug retailing companies.
The Energy Sector includes companies in oil, gas, and coal exploration, refining, marketing, and
transportation. Key players like Exxon Mobil, Chevron, and Shell dominate with a combined market cap of
$1.69T, representing 59.6% of the sector index weight.
The Energy Sector comprises companies engaged in exploration & production,
refining & marketing, and storage & transportation of oil & gas and coal & consumable fuels. It
also includes companies that offer oil & gas equipment and services.
The Financial Sector includes banking, capital markets, consumer finance, and insurance
companies. Leaders like Berkshire Hathaway, JPMorgan, and Visa dominate with a combined market cap of
$3.20T, representing 29.66% of the sector index weight.
The Financials Sector contains companies engaged in banking, financial
services, consumer finance, capital markets and insurance activities. It also includes Financial
Exchanges & Data and Mortgage REITs.
The Healthcare Sector spans providers, pharmaceuticals, biotechnology, and medical
equipment. Top firms like Eli Lilly, UnitedHealth, and Johnson & Johnson dominate with a combined market
cap of $3.59T, representing 43.81% of the sector index weight.
The Health Care Sector includes health care providers & services,
companies that manufacture and distribute health care equipment & supplies, and health care
technology companies. It also includes companies involved in the research, development,
production and marketing of pharmaceuticals and biotechnology products.
The Industrials Sector covers capital goods manufacturing, aerospace, defense, and
transportation services. Top firms like GE Aerospace, Caterpillar, and RTX dominate with a combined market
cap of $1.49T, representing 19.64% of the sector index weight.
The Industrials Sector includes manufacturers and distributors of capital
goods such as aerospace & defense, building products, electrical equipment and machinery and
companies that offer construction & engineering services. It also includes providers of
commercial & professional services including printing, environmental and facilities services,
office services & supplies, security & alarm services, human resource & employment services,
research & consulting services. It also includes companies that provide transportation services.
The Information Technology Sector spans software, hardware, IT services, and semiconductors.
Dominated by Apple, Nvidia, and Microsoft, it holds a combined market cap of $11.70T, representing
68.43% of the sector index weight.
The Information Technology Sector comprises companies that
offer software and information technology services, manufacturers and distributors of
technology hardware & equipment such as communications equipment, cellular phones,
computers & peripherals, electronic equipment and related instruments, and semi conductors
and related equipment & materials.
The Materials Sector spans chemicals, construction materials, mining, and packaging products.
Leading firms like Linde, BHP, and Air Liquide hold a combined market cap of $970.91B, representing 38.21%
of the sector index weight.
The Materials Sector includes companies that manufacture chemicals,
construction materials, forest products, glass, paper and related packaging products, and
metals, minerals and mining companies, including producers of steel.
The Real Estate Sector includes developers, operators, and REITs. Leaders like Prologis,
American Tower, and Equinix dominate with a combined market cap of $675.54B, representing 43.70% of
the sector index weight.
The Real Estate Sector contains companies engaged in real estate
development and operation. It also includes companies offering real estate related services and
Equity Real Estate Investment Trusts (REITs).
The Utilities Sector includes electric, gas, and water utilities, along with renewable energy
producers. Leading firms like NextEra Energy, Southern Company, and Iberdrola hold a combined market
cap of $801.33B, representing 43.76% of the sector index weight.
The Utilities Sector comprises utility companies such as electric, gas and water
utilities. It also includes independent power producers & energy traders and companies that
engage in generation and distribution of electricity using renewable sources.