Sectors S&P 500 Index BeastMode💥

What Is a Good Sector Breakdown for a Portfolio?

A well-diversified portfolio should have access to as many sectors as possible, and not focus on one individual stock in any single sector or related sectors. You may also want to apply the five percent rule with sector stocks. For example, if you wanted to diversify within specialty sectors, such as biotech, commercial real estate, or gold miners, you simply keep your allocation to 5% or less for each.

The Market Sectors include the following 11:

Energy

Materials

Industrials

Consumer Discretionary

Consumer Staples

Health Care

Financials

Information Technology

Telecommunication Services

Utilities

Real Estate

What Is the Sector Breakdown of the S&P 500 Index?

The S&P 500 Index enters a bull market after the longest downturn in decades, the following shows the cream of the crop largest markets.

Top S&P 500 Index Companies, by Weight Data as of May 5, 2023.

Sector Type Weight (%)

Apple Info Tech 7.46

Microsoft Info Tech 6.69

Amazon.com Consumer Discretionary 2.72

Nvidia Info Tech 2.04

Alphabet Inc. Class A Communication Services 1.82

Berkshire Hathaway Financials 1.69

Alphabet Inc. Class C Communication Services 1.59

Meta Platforms Communication Services 1.50

UnitedHealth Group Health Care 1.34

Tesla Consumer Discretionary 1.32

S&P 500 Sectors and the Market Cycle list of 11 sectors:

Weight and their typical performance over the business cycle

Sector Weight(%) Type

Information Technology 26.1 Cyclical

Health Care 14.5 Defensive

Financials 12.9 Cyclical

Consumer Discretionary 9.9 Cyclical

Industrials 8.6 Cyclical

Communication Services 8.2 Cyclical

Consumer Staples 7.4 Defensive

Energy 4.5 Defensive

Utilities 2.9 Defensive

Materials 2.6 Cyclical

Real Estate 2.5 Cyclical