Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

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

  A Snapshot Of Sector Investing
Posted Under: Sectors
Supporting Image for Blog Post

View from the Observation Deck  
  1. Today's chart shows estimated net capital flows to and from Morningstar's sector mutual fund and exchange-traded fund (ETFs) categories that mirror the 11 sectors that comprise the S&P 500 Index. 
  2. Year-to-date through 6/30/19, four of the 11 sector categories reported positive estimated net inflows. They were as follows: Communications ($3.32 billion); Real Estate ($2.87 billion); Utilities ($2.22 billion); and Consumer Defensive ($1.36 billion). 
  3. For the 12-month period ended 6/30/19, four of the 11 sector categories reported positive estimated net inflows. They were as follows: Communications ($6.72 billion); Utilities ($3.74 billion); Consumer Defensive ($3.35 billion); and Health ($537 million).
  4. In each of the time periods, investors largely favored defensive sectors over cyclical sectors. Despite relatively strong economic growth over the past year, the Trump administration's use of tariffs as leverage in renegotiating trade agreements, particularly with China, has clearly made some investors more cautious than they ordinarily might be, in our opinion.   
  5. For the 12-month period ended 6/30/19, the top-performing S&P 500 sectors, as measured by total return, include the five sectors noted in points 2 and 3. They were as follows: Utilities (+19.03%); Real Estate (+16.80%); Consumer Staples (+16.39%); Information Technology (+14.34%); Communication Services (+13.66%); and Health Care (+12.99%), according to Bloomberg.

This chart is for illustrative purposes only and not indicative of any actual investment. There can be no assurance that any of the projections cited will occur. 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 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. 

Download a PDF of this post, please click here
Posted on Thursday, July 25, 2019 @ 1:06 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 Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

The More Things Change…
Interest Rates and Earnings, It All Comes Full Circle
The Low U.S. Consumer Credit Default Rate Is Good For Discretionary Stocks
S&P 500 Index Earnings & Revenue Growth Rate Projections
More Than Just the Fed
The Only Constant Is Change
Some Perspective On The Outsized Gains In Stocks in 2019
A Snapshot Of Growth vs. Value Investing (Small-Caps)
Halftime Report
A Snapshot of Growth vs. Value Investing
Skip Navigation Links.
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.