S&P 500 Sector Weightings; Tech Nears 26%

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Includes: BXUB, BXUC, DMRL, EPS, IVV, PPLC, RSP, RVRS, RYARX, SDS, SFLA, SH, SPDN, SPLX, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SSO, UPRO, USMC, VFINX, VOO, XLB, XLE, XLF, XLI, XLK, XLP, XLU, XLV, XTL
by: Bespoke Investment Group

Yesterday we published our monthly S&P 500 Sector Weightings report for clients. The report provides a detailed historical look at S&P 500 sector weightings, and it’s something clients find very useful. Below we show current S&P 500 sector weightings. Anything stands out?

Yes, at 25.78%, the Technology sector now makes up more than a quarter of the S&P 500. That’s a bigger slice of the pie than the smallest six sectors combined.

The Financial sector is the second-largest at 14.65%, followed by Health Care at 13.71%, and then Consumer Discretionary at 12.86%. There was a time relatively recently when Energy, Consumer Staples, and Industrials all had weightings above 10%, but at this point they’re all in the single digits.

Getting back to the Technology sector, below is a look at its historical weight in the S&P 500. At 25.78%, Tech’s weighting was only higher during a 10-month window from December 1999 to September 2000.