The Only Constant Is Change

Bob Carey
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The Only Constant Is Change

Posted Under: Sectors

View from the Observation Deck

One of the most common questions we field on an ongoing basis is the following: What are your favorite sectors?
Sometimes the answer is more evident than at other times, such as Energy in the current climate, and sometimes it only makes sense via hindsight, in our opinion.
The top-performing sectors in Q1'22 were as follows (total returns): 38.99% (Energy), 4.77% (Utilities) and -1.01% (Consumer Staples). The total return on the S&P 500 Index was -4.60%. The other eight sectors generated total returns ranging from -11.92% (Communication Services) to -1.48% (Financials).
Here is how many times each of the major sectors have made it into the top 3 on a quarterly basis since the start of the COVID-19 pandemic (12/31/19-3/31/22): 5 (Energy); 4 (Information Technology); 3 (Financials); 3 (Industrials); 2 (Consumer Discretionary); 2 (Consumer Staples); 2 (Materials); 2 (Real Estate); 2 (Utilities); 1 (Communication Services); and 1 (Health Care), according to Bloomberg.
For comparative purposes, the following shows the cumulative total returns for these sectors over that same period: 77.38% (Information Technology); 50.89% (Consumer Discretionary); 50.01% (Materials); 42.28% (Energy); 39.40% (Health Care); 33.93% (Real Estate); 32.36% (Communication Services); 31.30% (Industrials); 30.53% (Financials); 30.05% (Consumer Staples); and 23.93% (Utilities), according to Bloomberg. The S&P 500 Index posted a cumulative total return of 45.33% during the period.
Click here to access the post featuring the top-performing sectors in Q2'20, Q3'20, Q4'20 and Q1'21.

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. The S&P 500 Index is an unmanaged index of 500 companies 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, April 5, 2022 @ 11:15 AM • Post Link

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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.

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