Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  Sector Performance Via Market Capitalization (Since Trump Was Elected)
Posted Under: Sectors

 
View from the Observation Deck  
  1. The three major indices featured in the table comprise the S&P Composite 1500 Index, which represents approximately 90% of total U.S. equity market capitalization (cap), according to S&P Dow Jones Indices. 
  2. Large-cap stocks, as measured by the S&P 500 Index, have significantly outperformed their mid- and small-cap counterparts, as measured by the S&P MidCap 400 and S&P SmallCap 600 Indices, since Donald J. Trump was elected four years ago. 
  3. When calculating the total returns on an average annualized basis (returns in table are cumulative), the S&P 500, S&P MidCap 400 and S&P SmallCap 600 Indices returned 14.89%, 8.76% and 7.38%, respectively, according to Bloomberg. 
  4. For comparative purposes, from 1926 through 2019 (94 years), data from Morningstar/Ibbotson Associates indicates that the S&P 500 Index posted an average annual total return of 10.20%, while the Ibbotson® Small Company Stock Index returned 11.91% on average. 
  5. With respect to large-caps, the top-performers by far were Information Technology and Consumer Discretionary. As it turns out, these two sectors were the beneficiaries of the shelter-at-home response to the COVID-19 pandemic, in our opinion.    
  6. Sector performance can vary widely by market cap. Consumer Staples appears to have the least amount of disparity in performance across the three market caps (see table). Communication Services stands out for its poor showing in the S&P MidCap 400 Index. Keep in mind, there are only 10 constituents in that sector. 
  7. As of the close of trading on 11/4/20, the S&P 500, S&P MidCap 400 and S&P SmallCap 600 Indices stood 3.84%, 5.90% and 17.19% below their respective all-time highs, according to Bloomberg. 
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and 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 S&P MidCap 400 Index is a capitalization-weighted index that tracks the mid-range sector of the U.S. stock market. The S&P SmallCap 600 Index is a capitalization-weighted index that tracks U.S. stocks with a small market capitalization. The 11 major sector indices are capitalization-weighted and comprised of S&P 500, S&P MidCap 400 and S&P SmallCap 600 constituents representing a specific sector.


Download a PDF of this post, please click here.
Posted on Thursday, November 5, 2020 @ 1:19 PM • Post Link Share: 
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
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Passive vs. Active Fund Flows
US Stock Markets Ended Oct. 30, 2020
US Economy and Credit Markets Ended Oct. 30, 2020
The Real Rate of Return on the 10-Year Treasury Note is Negative
A Snapshot of Growth vs. Value Investing
US Stock Markets Ended Oct. 23, 2020
US Economy and Credit Markets Ended Oct. 23, 2020
S&P 500 Index Dividend Payout Profile
How Stocks Have Fared Since Donald J. Trump Was Elected President
US Stock Markets Ended Oct. 16, 2020
Archive
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.
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 © 2021 All rights reserved.