Stock Buybacks by Sector
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View from the Observation Deck  
  1. S&P 500 Index stock buybacks totaled $198.84 billion (preliminary) in Q2'21, up 11.63% from the $178.13 billion spent in Q1'21 and up 124.27% from the $88.66 spent in Q2'20 (onset of COVID-19), according to S&P Dow Jones Indices.
  2. Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, notes that companies are increasing their buybacks but also remain cautious in the current climate. 
  3. For the 12-month period ended June 2021, S&P 500 Index buybacks totaled $609.35 billion, down 5.51% from the $644.85 billion repurchased over the same period through June 2020.
  4. S&P Dow Jones Indices reported that S&P 500 Index companies spent $3.199 trillion on buybacks for the five-year period ended 6/30/21. 
  5. As indicated in the chart, Information Technology was the most active sector with respect to buyback activity over the past five years. Technology companies repurchased stock valued at $997.90 billion, or 31.20% of total buybacks for the S&P 500 Index. Financials and Health Care followed with buybacks totaling $663.04 billion (20.73%) and $391.75 billion (12.25%), respectively. 
  6. The all-time high for S&P 500 Index buybacks was set in Q4'18 at $222.98 billion.
This chart is for illustrative purposes only and not indicative of any actual investment. Investors cannot invest directly in an index. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The 11 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector. 

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Posted on Thursday, September 30, 2021 @ 11:52 AM

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.