At the end of 2022, the combined weight of the S&P 500 Index (the “Index”) health care, consumer staples, and utilities sectors represented 26% of the Index. These are the three sectors in the Index that traditionally exhibit defensive characteristics and lower volatility. As of June 30, 2026, just three and a half years later, those three sectors represent approximately 16% of the Index. An astonishing decline. This is despite positive returns for all three sectors over that time frame, albeit significantly trailing the large growth trade led by the technology sector. 

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