Index Investing: Sector Breakdown

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Many in the FIRE community will be invested mostly, or even solely, in index funds.

They’re usually cheap, low maintenance and spread risk across multiple countries, sector and market cap.

But what are these individual indexes made up of and are there any dominant sectors?

Below you can find some of the most popular market indexes across the globe with their top and bottom sectors by market cap percentage.

Quick note – This was surprisingly difficult to find accurate and corroborative information across different sources on the sectors that make up these individual indexes, so please take these with a pinch of salt.

 

FTSE 100 (U.K)*

Top 5 sectors:

Personal & Household Goods – 13.28%

Healthcare – 13.26%

Oil & Gas – 10.14%

Basic Resources – 9.21%

Industrial Goods & Services – 9.10%

Bottom 5 sectors:

Telecommunications – 2.83%

Construction & Materials – 1.37%

Real Estate – 1.16%

Technology – 0.82%

Chemicals – 0.67%

 

FTSE 250 (U.K)*

Top 5 sectors:

Financials – 48.97%

Industrials – 19.98%

Consumer Services – 12.99%

Consumer Goods – 6.78%

Healthcare – 3.81%

Bottom 5 sectors:

Basic Materials – 2.33%

Technology – 2.11%

Utilities – 1.16%

Oil & Gas – 0.98%

Telecommunications – 0.90%

 

NASDAQ (US)*2

The NASDAQ is only comprised of 6 sectors total.

Top 3 sectors:

Technology – 56.41%

Consumer Servies – 24.90%

Healthcare – 9.01%

Bottom 3 sectors:

Consumer Goods – 4.44%

Industrials – 4.46%

Telecommunications – 0.76%

 

S&P 500 (US)*3

Top 5 sectors:

Technology – 27.5%

Healthcare – 14.6%

Consumer Discretionary – 10.8%

Consumer Services – 10.8%

Financials – 10.1%

Bottom 5 sectors:

Consumer Staples – 7.0%

Utilities – 3.1%

Real Estate – 2.8%

Energy – 2.8%

Materials – 2.5%

 

Dow Jones (US)*3

Top 3 sectors:

Information Technology – 26.3%

Healthcare – 14.5%

Consumer Discretionary – 14.2%

Bottom 3 sectors:

Telecommunications – 4.4%

Energy – 3.6%

Materials – 1.1%

 

Nikkei 225 (Japan)*4

Top 3 sectors:

Technology – 45.73%

Consumer Goods – 24.50%

Materials – 14.11%

Bottom 5 sectors:

Capital Goods/ ‘Others’ – 10.87%

Transportation & Utilities – 2.57%

Financials – 2.21%

 

BSE Sensex (India)*5

Top 3 sectors:

Finance – 38.65%

Information Technology – 15.90%

Oil & Gas – 15.79%

Bottom 5 sectors:

‘Housing Related’ – 1.09%

Consumer Durables – 1.02%

Materials – 0.65%

 

Hang Seng (Hong Kong)*6

Top 5 sectors:

Financials – 48.35%

Information Technology – 11.93%

Properties & Construction – 10.23%

Consumer Discretionary – 6.44%

Utilities – 4.84%

Bottom 5 sectors:

Consumer Staples – 2.79%

Conglomerates – 2.66%

Healthcare – 2.15%

Industrials – 1.31%

Materials – 0.00%

 

CAC 40 (France)*7

The most accurate data I found on this index was presented in graph form where the percentages were not presented in an easily readable format. Nonetheless, here they are in weighting order as above.

Top 5 sectors:

Clothing & Accessories

Oil & Gas

Cosmetics

Banks

Construction

Bottom 5 sectors:

Consumer Digital Services

Transaction Processing Services

Food Retailers & Wholesalers

Retail REITS

Iron & Steel

 

Sources

* FTSE Russell – as of Jun. 2020

*2 nasdaq.com – as of Jun. 2018

*3 spglobal.com – as of Jun. 2020

*4 nikkei.indexes.co – as of Dec. 2019

*5 bseindia.com – as of Jul. 2020

*6 hsi.com – as of May 2020

*7 indeces.euronext.com – as of June 2020

 

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