U.S. stock industry sector: The U.S. stock market is the largest and most liquid financial investment market in the world, attracting investors from all over the world, including both investors and a large number of speculators. Before entering the U.S. stock market, understanding the industries in which stocks are distributed in the U.S. stock market can help investors better conduct stock analysis, such as the individual situation of the stock offering company, its performance in the industry, etc., or help investors judge investment goals based on the market trends of different sectors. So, what sectors does the U.S. stock market currently include? Which industries do they correspond to? After reading this article, you will understand all 11 sectors of the US stock market, the industries they include, and common stock and ETF products. GICS, the full name is Global Industry Classification Standard, which is the Global Industry Classification Standard. It was jointly developed by Morgan Stanley Capital International (MSCI) and Standard & Poor's (SP) in 1999. GICS is a classification method that defines company attributes for different companies based on their operating businesses. Under this standard, GICS divides companies into different sectors (Sectors), different industry groups (Industry groups), different industries (Industries) and different sub-industries (Sub-industry), thereby systematically identifying the operating attributes of each company, and assigning each company a sub-industry level GICS code. In the field of financial investment, GICS is a classification standard used by many investors, analysts and economists when measuring and analyzing different companies. Through this standard, GICS can be compared with companies in the general group to obtain more accurate company operations. At the same time, investors can also use GICS to get an overview of the market trends among different sectors or different industry groups, so as to build a diversified investment portfolio that is more suitable for them. Different companies will be included or excluded from the calculation process of some specific financial indexes according to their own GICS codes, thereby affecting the index changes of specific sectors or industries and providing guiding data for market investment. Since its creation, GICS has been adjusted according to the continuous changes in the market. For example, in 2016, the real estate sector was added, and in 2018, the then Telecommunications Sector was changed to the Communication Services Sector. Currently, more than 26,000 stocks in the world are classified using GICS, accounting for more than 95% of the total market value of listed companies around the world. The U.S. stock market includes 11 sectors, 24 industry groups, 69 industries and 158 sub-industries. The 11 sections include: Information Technology Financials Healthcare Consumer Discretionary Industries Communication Services Consumer Staples Energy Real Estate Materials Utilities 1. Information Technology The GICS code for the information technology sector is 45. The information technology sector mainly covers different categories of technology innovation companies, mainly including three categories: software (49%), hardware (30%), and semiconductors (21%). Note: The above ratio uses the ratio of the total market capitalization of companies within each category.
More subdivided types of companies include: focusing on designing software, providing software technology solutions, computer hardware, hardware technical support and equipment that may be involved in installation and later use, manufacturing and sales companies formed, etc. It also includes the semiconductor industry, including semiconductor manufacturers and companies used to produce semiconductor chip equipment. The fundamental information of this sector as of May 6, 2022: Market value $13.23T market weight 27.23% Price-to-earnings ratio P/E (actual GAAP last year) 29.42 P/E (current valuation) 29.46 enterprise value $959.32 B Earnings per share (EPS TTM) $6.03 EPS Growth (TTM vs. Prior TTM) 30.58% Revenue Growth (TTM vs. Prior TTM) 35.11% Return on Equity (TTM) -14.91% Return on Investment (TTM) 24.02% Total Debt/Equity (TTM) -13.06 Dividend Yield (TTM) 1.22% Data source: Fidelity Industries covered by information technology Industry group (code) Industry (code) Sub-industry (code) Software & Services software and services 4510 IT Services IT services 451020 IT Consulting & Other Services IT consulting and other services 45102010 Data Processing & Outsourced Services Data processing and outsourcing services 45102020 Internet Services & Infrastructure Internet services and infrastructure 45102030 Software Software 451030 Application Software application software 45103010 Systems Software System software 45103020 Technology Hardware & Equipment Technology hardware and equipment 4520 Communications Equipment Communication equipment 452010 45201020 Technology Hardware, Storage & Peripherals Technology hardware, storage and peripherals 452020 45202030 Electronic Equipment, Instruments & Components Electronic equipment, instruments and components 452030 Electronic Equipment & Instruments Electronic equipment and instruments 45203010 Electronic Components Electronic components 45203015 Electronic Manufacturing Services Electronics manufacturing services 45203020 Technology Distributors technology dealer 45203030 Semiconductors & Semiconductor Equipment Semiconductors and Semiconductor Equipment 4530 453010 Semiconductor Equipment Semiconductor equipment 45301010 Semiconductors Semiconductor 45301020 Information technology industry characteristics The information technology sector currently accounts for 27.23% of the total market weight, and there are currently 471 stocks in this sector [source]. Advantages of this sector With the promotion of fifth-generation (5G) cellular networks and the rising trend of localization, it can help improve fundamentals; Balance sheet and earnings growth potential are generally strong; Financing costs are generally low;
As the demand for financial services technology and online retail business continues to increase, the demand for infrastructure and software will continue to increase; When companies invest in technology to provide productivity, the likelihood of long-term growth is higher. Disadvantages of this sector The sector has been overvalued in its investment history; Currently, the global inventory of semiconductors is limited and demand exceeds supply; Funding in this sector is highly concentrated in a few stocks; Antitrust litigation between the United States and Europe could have dramatic ramifications. Common stocks and ETFs in the industry Apple (AAPL) Microsoft Microsoft (MSFT) Amazon Amazon (AMZN) Vanguard Information Technology ETF Vanguard Information Technology ETF (VGT) Fidelity MSCI Information Technology ETF Fidelity MSCI Information Technology ETF (FTEC) SPDR Morgan Stanley Technology ETF SPDR Morgan Stanley Technology ETF (MTK) SPDR S&P Semiconductor ETF SPDR S&P Semiconductor ETF (XSD) 2. Financials The financial services sector primarily includes companies involved in money processing, primarily the banking industry, but also includes some financial sectors such as insurance companies, brokerage firms, financial product providers, and mortgage-related real estate investment trusts. Under normal circumstances, changes in international interest rates and the Federal Reserve's policy will produce relatively obvious changes in the performance of the financial services sector. The GICS code for the financial services sector is: 40 The fundamental information of this sector as of May 6, 2022: $7.89T 10.96% 9.83 P/E (valuation this year) 11.82 $133.74 B Earnings per share EPS (TTM) $11.30 52.23% Revenue Growth (TTM vs. Prior TTM) 9.52% Return on Equity (TTM) 15.99% Return on Investment (TTM) 8.33% Total Debt/Equity (TTM) 147.79 Dividend Yield (TTM) 3.26% Data source: Fidelity Industries covered by financial services Banks bank 4010 401010 Diversified Banks diversified bank 40101010 Regional Banks regional bank 40101015 Thrifts & Mortgage Finance savings and mortgages 401020 40102010 Diversified Financials Diversified finance 4020 Diversified Financial Services Diversified financial services 402010 Other Diversified Financial Services Other diversified financial services 40201020 Multi-Sector Holdings multi-sector holdings 40201030 Specialized Finance Professional Finance 40201040 Consumer Finance consumer finance 402020 40202010 Capital Markets capital market 402030 Asset Management & Custody Banks Asset Management and Custody Bank 40203010 Investment Banking & Brokerage Investment Banking and Brokerage 40203020 Diversified Capital Markets Diversified capital market 40203030
Financial Exchanges & Data Financial transactions and data 40203040 Mortgage Real Estate Investment Trusts (REITs) Mortgage Real Estate Investment Trusts (REITs) 402040 Mortgage REITs Mortgage REIT 40204010 Insurance insurance 4030 403010 Insurance Brokers insurance broker 40301010 Life & Health Insurance life health insurance 40301020 Multi-line Insurance Multi-line insurance 40301030 Property & Casualty Insurance property insurance 40301040 Reinsurance reinsurance 40301050 Characteristics of the financial services industry The financial services sector currently accounts for 10.96% of the total market weight. There are currently 1,518 stocks in this sector [source]. Sector advantage A rise in long-term or short-term interest rates will boost the sector; The sector's valuation is attractive compared with historical evaluation levels and other sectors. Sector disadvantages Current high cash levels and low loan volume levels are hampering the sector's upward trend; When economic growth approaches its peak, it dampens the overall performance of the market; The increased supervision of the banking industry will also have a certain inhibitory effect on the rise of the sector; Fintech companies will shift some of the market share away from traditional banks. Visa(V) JPMorgan Chase (JPM) Bank of America (BAC) Financial Select Sector SPDR Fund (XLF) 3. Healthcare The healthcare sector consists of two main tenants: companies that develop biotechnology-based drugs and treatments, as well as the analytical tools and supplies needed for clinical trials to test these treatments, and companies that provide medical equipment and services, such as surgical supplies, medical diagnostic tools, and health insurance. The GICS code for the healthcare sector is: 35 $7.51T 14.20% 31.73 29.98 $186.46B $7.37 211.63% 200.16$ 19.64% 15.01% 56.76 2.13% Industries covered by healthcare Health Care Equipment & Services Healthcare equipment and services 3510 Health Care Equipment & Supplies Health Care Equipment & Supplies 351010 Health Care Equipment Health Care Equipment 35101010 Health Care Supplies health products 35101020 Health Care Providers & Services Healthcare Providers and Services 351020 Health Care Distributors Healthcare Distributor 35102010 Health Care Services health care services 35102015 Health Care Facilities health care facilities 35102020 Managed Health Care managed health care 35102030 Health Care Technology healthcare technology 351030 35103010 Pharmaceuticals, Biotechnology & Life Sciences Pharmaceuticals, Biotechnology and Life Sciences 3520
Biotechnology Biotechnology 352010 35201010 Pharmaceuticals Medicines 352020 35202010 Life Sciences Tools & Services Life science tools and services 352030 35203010 Introduction to the healthcare industry sector The sector currently accounts for 14.20% of the total market weight. There are currently 408 stocks in this sector [source]. Most companies in the sector have strong balance sheets with ample cash for dividends and M&A; As the global population ages and emerging markets continue to grow, it will be conducive to the upward trend of this sector; Demand for elective surgeries, drug sales and medical equipment is gradually recovering; Current valuations are attractive relative to the sector's historical levels. The number of professionals providing care is declining while associated costs are increasing; New competition from retailers such as Amazon Care will have a certain impact on the sector's traditional earnings. UnitedHealth Group Incorporated (UNH) Johnson & Johnson (JNJ) Eli Lilly and Company (LLY) Pfizer Inc.(PEF) AbbVie Inc.(ABBV) Health Care Select Sector SPDR ETF (XLV) Invesco S&P 500 Equal Weight Health Care ETF (RYH) iShares Global Healthcare ETF (IXJ) 4. Consumer Discretionary The consumer discretionary industry sector, known as Consumer Discretionary in English, mainly includes products based on consumers’ financial status (can you please explain more). Therefore, discretionary consumption is affected by the overall economic environment, interest rates and other factors. This sector mainly includes a variety of physical retail companies and e-commerce companies, including car sales companies, luxury goods sales companies, leisure product retail companies, etc., as well as service companies such as hotels and restaurants. The GICS code for the consumer discretionary sector is: 25. $6.98T 11.45% 24.92 34.29 $415.26B $14.03 250.25% 40.23% 79.60% 13.64% 335.52 2.15% Industries included in non-essential consumption Automobiles & Components Automobiles and parts 2510 Auto Components Auto parts 251010 Auto Parts & Equipment Auto parts and equipment 25101010 Tires & Rubber tires and rubber 25101020 Automobiles car 251020 Automobile Manufacturers car manufacturer 25102010 Motorcycle Manufacturers motorcycle manufacturer 25102020 Consumer Durables & Apparel Consumer Durables and Clothing 2520 Household Durables Home Durables 252010 Consumer Electronics consumer electronics 25201010 Home Furnishings home furnishings 25201020 Homebuilding house construction 25201030 Household Appliances home equipment
25201040 Housewares & Specialties Homewares and Specialties 25201050 Leisure Products Leisure products 252020 25202010 Textiles, Apparel & Luxury Goods Textiles, apparel and luxury goods 252030 Apparel, Accessories & Luxury Goods Clothing, accessories and luxury goods 25203010 Footwear footwear 25203020 Textiles Textiles 25203030 Consumer Services consumer services 2530 Hotels, Restaurants & Leisure Hotels, restaurants and leisure 253010 Casinos & Gaming Casino and games 25301010 Hotels, Resorts & Cruise Lines Hotels, Resorts and Cruise Lines 25301020 Leisure Facilities leisure facilities 25301030 Restaurants restaurant 25301040 Diversified Consumer Services 253020 Education Services Educational services 25302010 Specialized Consumer Services Professional consumer services 25302020 Retailing retail 2550 Distributors dealer 255010 25501010 Internet & Direct Marketing Retail Internet and direct selling retail 255020 25502020 Multiline Retail Multi-line retail 255030 Department Stores department store 25503010 General Merchandise Stores grocery store 25503020 Specialty Retail Professional retail 255040 Apparel Retail clothing retail 25504010 Computer & Electronics Retail Computer and electronic product retail 25504020 Home Improvement Retail Home Decor Retail 25504030 Specialty Stores Specialty store 25504040 Automotive Retail Automobile retail 25504050 Homefurnishing Retail home retail 25504060 Non-essential industry characteristics The sector currently accounts for 11.45% of the total market weight. There are currently 290 stocks in this sector [source]. The sector will see an upward trend as employees return to work; The expansion of online retail models will promote the rise of the retail industry; Rapidly rising housing prices will promote the positive development of the overall retail industry, including home improvement companies; The sector's movements are overly concentrated in Internet sales and automobiles; Semiconductor shortages put huge pressure on automotive and consumer electronics production; High interest rates will reduce consumers' spending power, thereby inhibiting consumption; eBay Inc.(EBAY) Ford Motor Co.(F) Amazon.com, Inc. (AMZN) McDonald’s Corporation (MCD) Tesla, Inc. (TSLA)
iShares U.S. Consumer Discretionary ETF (IYC) Invesco S&P Small Cap Consumer Discretionary ETF (PSCD) ProShares Online Retail ETF (ONLN) 5. Industries The industrial sector covers a variety of company types involved in heavy equipment, mainly divided into three categories: capital goods, business and professional services, and transportation, including companies that provide aviation, railway, logistics and transportation, national defense, and construction engineering equipment, as well as companies that provide related services. The GICS code for the industrial sector is: 20. $5.13T 7.96% 27.79 30.94 $63.67B $6.89 53.73% 21.04% 18.78% 10.28% 86.15 2.11% Industries included in industry Capital GoodsCapital Goods 2010 Aerospace & DefenseAerospace & Defense 201010 Aerospace & Defense Aerospace & Defense 20101010 Building Products building products 201020 20102010 Construction & Engineering Architecture and Engineering 201030 20103010 Electrical Equipment electronic equipment 201040 Electrical Components & Equipment Electrical components and equipment 20104010 Heavy Electrical Equipment Heavy electrical equipment 20104020 Industrial Conglomerates industrial group 201050 20105010 Machinery machinery 201060 Construction Machinery & Heavy Trucks Industrial machinery and heavy trucks 20106010 Agricultural & Farm Machinery Agriculture and agricultural machinery 20106015 Industrial Machinery industrial machinery 20106020 Trading Companies & Distributors Trading companies and distributors 201070 20107010 Commercial & Professional Services business and professional services 2020 Commercial Services & Supplies Business services and supplies 202010 Commercial Printing commercial printing 20201010 Environmental & Facilities Services Environmental and facility services 20201050 Office Services & Supplies Office services and supplies 20201060 Diversified Support Services Diversified support services 20201070 Security & Alarm Services Security and alarm services 20201080 Professional Services Professional services 202020 Human Resource & Employment Services Human Resources and Employment Services 20202010 Research & Consulting Services Research and consulting services 20202020 Transportation transportation 2030
Air Freight & Logistics Air freight and logistics 203010 air freight logistics 20301010 Airlines air transport 203020 20302010 Marine Shipping 203030 Ocean transportation 20303010 Road & Rail Roads and Railways 203040 Railroads rail transport 20304010 Trucking Trucking 20304020 Transportation Infrastructure quiver infrastructure 203050 Airport Services Airport services 20305010 Highways & Railtracks road and rail 20305020 Marine Ports & Services Marine ports and services 20305030 Industrial industry characteristics The sector currently accounts for 7.96% of the total market weight. There are currently 467 stocks in this sector [source]. In the environment of global economic growth, the demand for capital continues to increase, and this sector is a direct beneficiary; Amid rising earnings expectations, many companies in the sector are fundamentally sound; As geopolitical risks rise, rising defense spending will drive the sector; The boom in global trade and online shopping has strongly stimulated the development of the transportation industry. Increases in fuel prices can adversely affect the transportation and aviation industries. United Parcel Service, Inc.(UPS) Union Pacific Corporation (UNP) Raytheon Technologies Corporation (RTX) Honeywell International Inc. (HON) Caterpillar Inc. (CAT) iShares U.S. Aerospace & Defense ETF (ITA) Invesco Aerospace & Defense ETF (PPA) 6. Communication Services The communication services sector is the newest sector in the current GICS sector setup, which includes several industries that once belonged to other sectors. This sector mainly includes telecommunications service providers, media companies and entertainment companies, including traditional fixed-line phone service providers, wireless telecommunications network service providers, traditional television and radio companies and emerging streaming media companies. The GICS code for the communication services sector is: 50. The sector’s fundamental information as of May 2022: $4.84T 8.64% 16.90 19.96 $603.11B $38.44 41.36% 27.92% 20.56% 14.51% 67.27 5.79% Industries covered by communication services Telecommunication Services telecommunications services 5010 Diversified Telecommunication Services Diversified telecommunications services 501010 Alternative Carriers alternative carrier 50101010 Integrated Telecommunication Services Integrated telecommunications services 50101020 Wireless Telecommunication Services wireless telecommunications services 501020 50102010 Media & Entertainment media & entertainment 5020 Media media 502010 Advertising Advertisement 50201010 Broadcasting broadcast 50201020
Cable & Satellite limited and satellite 50201030 Publishing publish 50201040 Entertainment entertainment 502020 Movies & Entertainment movies and entertainment 50202010 Interactive Home Entertainment interactive home entertainment 50202020 Interactive Media & Services Interactive media and services 502030 50203010 Characteristics of the communication service industry The sector currently accounts for 8.64% of the total market weight. There are currently 162 stocks in this sector [source]. Social media currently has a clear competitive advantage over other industries; The promotion of 5G networks will further enhance the trend of this sector; Government investment in infrastructure will reduce the cost of using 5G networks. The ability of some brands, such as Apple, to block ads may affect social media companies’ advertising revenue; Increasing antitrust regulation will affect the revenue of search engines and social media companies; Streaming services are at risk of market saturation, which could limit price increases as new competing companies join; Sector trends are mainly affected by the two giant companies, Facebook and Google, and their trends have a very significant impact on the overall trend of the sector; Alphabet Inc.(GOOGL) Meta Platforms, Inc. (FB) Verizon Communications Inc. (VZ) The Walt Disney Company (DIS) AT&T Inc. (T) Netflix, Inc. (NFLX) Communication Services Select Sector SPDR Fund (XLC) Invesco S&P 500 Equal Weight Communication Services ETF (EWCO) iShares Global Comm Services ETF (IXP) 7. Consumer Staples The consumer staples sector mainly includes goods and services that consumers will definitely need regardless of their financial status, such as food, tobacco, beverages, household and personal care products, and involves manufacturers and distributors of these products, such as tobacco manufacturing companies, and supermarkets and other sales companies. The GICS code for the consumer staples sector is: 30. $4.44T 6.82% 22.52 19.68 $198.22B $5.15 11.13% 7.16% 14.05% -96.13 2.50% Industries included in necessary consumption Food & Staples Retailing Video and essential retail 3010 Food and essentials retail 301010 Drug Retail Drug retail 30101010 Food Distributors food distributor 301010120 Food Retail food retail 30101030 Hypermarkets & Super CentersHypermarkets & Super Centers 30101040 Food, Beverage & Tobacco Food, Beverages and Tobacco 3020 Beverages drinks 302010 Brewers brewer 30201010 Distillers & Vintners rectifier and vintner 30201020 Soft Drinks soft drinks 30201030 Food Products food products 302020
Agricultural Products agricultural products 30202010 Packaged Foods & Meats Packaged food and meat 30202030 Tobacco Tobacco 302030 30203010 Household & Personal Products Home and personal products 3030 Household Products Household items 303010 30301010 Personal Products personal products 303020 30302010 Characteristics of Necessary Consumer Industries The sector currently accounts for 6.82% of the total market weight. There are currently 154 stocks in this sector [source]. Companies in this sector generally have stable profitability; Companies in this sector are committed to cutting costs as much as possible to achieve better profitability; The recovery of the catering industry has stimulated the demand for food wholesale, thus driving the rise of the overall sector; Some companies do a good job of passing on high costs as a way to stabilize profitability. Although certain costs can be passed on, companies in this sector generally face higher input costs; If interest rates rise faster than expected economic growth, it could set back the industry's upward trend. Walmart Inc.(WMT) The Procter & Gamble Company (PG) The Coca-Cola Company (KO) PepsiCo, Inc. (PEP) Costco Wholesale Corporation (COST) Philip Morris International Inc.(PM) Consumer Staples Select Sector SPDR Fund (XLP) Vanguard Consumer Staples ETF (VDC) iShares U.S. Consumer Staples ETF (IYK) 8. Energy The energy sector mainly targets the oil and gas industries, including oil exploration and production companies, as well as natural gas exploration, reserve and marketing companies. It also involves producers of other consumable energy sources such as coal and ethanol, as well as companies that provide equipment, materials and related services in the exploration, reserve and production processes. The GICS code for the energy sector is: 10. $3.80T 4.17% 12.88 9.51 $148.00B $4.81 1,554.17% 74.31% 19.55% 9.71% 63.69 4.32% Industries covered by energy Energy energy 1010 Energy Equipment & Services Energy equipment and services 101010 Oil & Gas Drilling oil and gas drilling 10101010 Oil & Gas Equipment & Services Oil and Gas Equipment and Services 10101020 Oil, Gas & Consumable Fuels Oil, natural gas and consumable fuels 101020 Integrated Oil & Gas integrated oil and gas 10102010 Oil & Gas Exploration & Production Oil and Gas Exploration and Production 10102020 Oil & Gas Refining & Marketing Oil and Gas Refining and Marketing 10102030 Oil & Gas Storage & Transportation Oil and gas reserves 10102040 Coal & Consumable Fuels
Coal and consumable fuels 10102050 Energy industry characteristics The sector currently accounts for 4.17% of the total market weight. There are currently 217 stocks in this sector [source]. In the current environment of energy supply reduction caused by the Russia-Ukraine war, the trend of this sector is on the rise; Large, diversified energy companies with strong balance sheets and excellent expense and investment management self-regulation capabilities; The valuation of this sector is more attractive than other sectors. Oil prices have risen to levels that are putting pressure on the economy and demand for oil; As global economic expansion slows, the sector may face a consequent slowdown in its upside; Increased regulation could limit the sector's upside; When the Russian-Ukrainian war situation eases and sanctions on Iran are relaxed, resulting in the recovery of oil supply, the trend of the sector may decline; With the promotion of clean energy, the demand for oil will decrease. Exxon Mobil Corporation(XOM) Chevron Corporation Chevron Corporation (CVX) Shell plc (SHEL) TotalEnergies SE (TTE) BP p.l.c. (BP) Energy Select Sector SPDR Fund(XLE) Vanguard Energy ETF (VDE) Alerian MLP ETF (AMLP) 9. Real Estate The real estate sector mainly includes real estate developers and managers, including real estate developers, real estate operating companies, etc. At the same time, trust funds for various entity real estate investments are also included in this sector, such as common industrial, hotel, residential, office and medical real estate investment trust funds. The GICS code for the real estate sector is: 60. $1.65T 2.92% 33.65 28.90 $47.19B $3.41 124.10% 28.91% 15.71% 5.15% 163.88 3.01% Industries included in real estate Real Estate real estate 6010 Equity Real Estate Investment Trusts (REITs) Equity REIT (REITs) 601010 Diversified REITs Diversified Electrical Protection Investment Trust Fund 601010101 Industrial REITs Industrial REIT 60101020 Hotel & Resort REITs Hotel & Resort REIT 60101030 Office REITs Office REITs 60101040 Health Care REITs Healthcare REIT 60101050 Residential REITs Residential REIT 60101060 Retail REITs retail REITs 60101070 Specialized REITs Specialty REITs 60101080 Real Estate Management & Development Real estate management and development 601020 Diversified Real Estate Activities Diversified real estate activities 60102010 Real Estate Operating Companies Real estate operating company 60102020 Real Estate Development real estate development 60102030 Real Estate Services Real estate services 60102040 Real estate industry characteristics
The sector currently accounts for 2.92% of the total market weight. There are currently 368 stocks in this sector [source]. As the Federal Reserve cuts interest rates, it is easier for investors to raise funds, allowing REITs to bring attractive high dividends; With the rapid development of technology services and e-commerce, industries such as warehouses, data centers, and telecommunications towers are seeing an obvious upward trend; Single-family REITs see strong gains as rental prices rise; Long-term demographic outcomes could lead to a resumption of nursing and assisted living facility construction to stimulate overall trends in the industry; If the Fed starts raising interest rates, the industry will be directly affected; The development of e-commerce has caused physical stores to shrink, thus affecting retail REITs; Working from home has reduced demand for offices, thereby reducing demand for office real estate; American Tower Corporation (AMT) Prologis, Inc. (PLD) Crown Castle International Corp. (CCI) Simon Property Group, Inc. (SPG) Digital Realty Trust, Inc. (DLR) Nuveen Short-Term REIT ETF (NURE) iShares Residential and Multisector Real Estate ETF (REZ) 10. Materials The materials sector mainly includes companies that provide multiple categories of commodities for manufacturing and other applications, including mining companies, forest products companies, paper companies, chemical manufacturers, building materials manufacturers, packaging manufacturers, and container manufacturers. The overall sector has certain cyclical value characteristics. The GICS code of the material section is: 15. $2.59T 2.77% 10.32 10.15 $55.78B $5.97 229.51% 33.97% 27.27% 12.82% 103.48 4.07% Industries covered by the material Materials Material 1510 Chemicals chemicals 151010 Commodity Chemicals commercial chemicals 15101010 Diversified Chemicals Polychemicals 15101020 Fertilizers & Agricultural Chemicals Fertilizers and pesticides 15101030 Industrial Gases industrial gas 15101040 Specialty Chemicals specialty chemicals 15101050 Construction Materials building materials 151020 15102010 Containers & Packaging Containers and packaging 151030 Metal & Glass Containers Metal and glass containers 15103010 Paper Packaging paper packaging 15103020 Metals & Mining Metals and Mining 151040 Aluminum 15104010 Diversified Metals & Mining Multimetals and Mining 15104020 Copper 15104025 Gold gold 15104030 Precious Metals & Minerals Precious metals and minerals 15104040 Silver 15104045 Steel 15104050 Paper & Forest Products Paper and forest products 151050 Forest Products forest products 15105010
Paper Products paper products 15105020 Material industry sector characteristics The sector currently accounts for 2.77% of the total market weight. There are currently 160 stocks in this sector [source]. The sector's overall valuation is attractive; Earnings growth is expected to accelerate amid strong trends in metals and agricultural prices; As policy support for clean energy and related infrastructure will stimulate increased demand for industrial materials and related services; Currently, with the sanctions on Russia, commodity and chemical/fertilizer prices are rising. When the economy grows too fast and causes the Federal Reserve to raise interest rates for regulation, the cyclical price industry will limit the upward trend of the sector; High energy prices have increased chemical production costs, leading to a decline in profits; Severe supply chain bottlenecks will limit the overall rise in cover prices; Strict environmental regulations will have a certain negative impact on the industry. DuPont de Nemours, Inc. (DD) BHP Group Limited (BHP) The Sherwin-Williams Company (SHW) Freeport-McMoRan Inc. (FCX) Air Products and Chemicals, Inc. (APD) iShares Global Materials ETF (MXI) Materials Select Sector SPDR Fund (XLB) 11. Utilities The utility sector mainly covers different types of public utility companies, such as electric utility companies, water utility companies and natural gas utility companies that provide electricity to residential and commercial users. Some independent power companies or renewable electricity producers are also classified in this sector. Public utility companies usually have obvious regional characteristics. For example, Duco Energy's main service scope is the southeastern region of the United States, and Consolidated Edison's main service scope is the northeastern region. The GICS code for the public utilities sector is: 55. 2.87% 24.64 22.73 $75.00B $2.43 23.82% 11.16% 8.75% 183.87% 4.28% Industries included in public utilities Utilities public utility company 5510 Electric Utilities electric utility company 551010 551010110 Gas Utilities natural gas utility company 551020 55102010 Multi-Utilities multifunctional utility company 551030 55103010 Water Utilities water utility company 551040 55104010 Independent Power and Renewable Electricity Producers Independent and renewable electricity producers 551050 Independent Power Producers & Energy Traders Independent power producers and energy traders 55105010 Renewable Electricity renewable electricity 55105020 Characteristics of the public utility industry The sector currently accounts for 2.87% of the total market weight. There are currently 124 stocks in this sector [source]. In most economic environments, there is a relatively stable industry development trend; As a capital-intensive sector, only low financing costs are required. As the risk decreases, the profitability will also decrease relatively; The overall valuation is not overly attractive to investors; At this stage, there is not enough certainty about legislative funding for the clean energy industry. NextEra Energy ( NEE ) Duke Duke ( DUK )
The Southern Company (SO) Consolidated Edison, Inc. (ED) American Electric Power Company, Inc. (AEP) NextEra Energy, Inc. (NEE) Utilities Select Sector SPDR Fund (XLU) Global X MSCI China Utilities ETF (CHIU)