Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  The Only Constant Is Change
Posted Under: Sectors
Supporting Image for Blog Post

 
View from the Observation Deck  
  1. One of the most common questions we field on an ongoing basis is the following: What are your favorite sectors?
  2. Sometimes the answer is more evident than at other times, in our opinion.
  3. You didn't need much of a crystal ball to tout Information Technology in 1998 and 1999 (top-performing S&P 500 sector both years by a wide margin), as was the case with Energy in 2004 & 2005, according to performance data from Bloomberg.
  4. From 2006-2018, however, no sector in the S&P 500 Index was able to repeat as the top-performer on a calendar year basis.
  5. As indicated in the chart above, while the top-performing sectors in Q3'19 were the same, and in the same order, as in Q4'18, this time around investors made money as opposed to losing less. 
  6. With the exception of Q4'18, S&P 500 Index sector returns were mostly strong for the 12-month period ended 9/30/19. While the S&P 500 Index posted a total return of 4.25% for the period, five of the 11 sectors outperformed the broader index, according to Bloomberg. They were as follows: 27.10% (Utilities); 24.74% (Real Estate); 16.85% (Consumer Staples); 8.60% (Information Technology); and 5.69% (Communication Services).  
  7. Despite the respectable showing, investors were net sellers of sector funds over the 12-month period ended August 2019 (most recent data). Sector Equity mutual funds and exchange-traded funds (ETFs) reported estimated net outflows totaling $60.7 billion (-$33.3 billion/Active vs. -$27.4 billion/Passive), according to Morningstar. 
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. Investors cannot invest directly in an index. Past performance is no guarantee of future results. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The respective S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector. 

Download a PDF of this post, please click here.
Posted on Tuesday, October 8, 2019 @ 3:00 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
The Lack of Bulls is Bullish Sign!
One Take On The U.S. Dollar
U.S. Retail Investors Seem Committed To Foreign Equities
S&P 500 Index Earnings & Revenue Growth Rate Projections
The Upcoming Winter Heating Season Could Provide A Much Needed Boost To Natural Gas Prices
Evaluations and Opportunities
S&P 500 Index Companies Continue To Reward Shareholders
S&P 500 Index’s Dividend Payout Expected To Set An All-Time High In Q3’19
How U.S. Stocks & Bonds Have Fared Since The Attacks On 9/11
Homebuilder-Related Stocks In Rally Mode In 2019
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.