Family Affair: A Look at Sector Trends

This year is slightly more than four months old, and despite a seemingly calm ride for the market (at least at the index level), there has been considerable churn under the surface. We've written about the weakness seen at the individual member level, but in this report, we'll look a couple levels up at the 11 S&P 500 sectors. The story of subsurface churn is still the same, but there have been key leadership shifts over the past few months, many of which have occurred in a somewhat stealthy way.

The chart below shows a year-to-date performance derby for all 11 sectors. You can see that Communication Services is maintaining a healthy lead at nearly 18%, while Real Estate is the only laggard and down by more than 7%.

Real Estate lags

Real estate lags

Source: Charles Schwab, Bloomberg, as of 4/12/2024.

Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested indirectly. Past performance is no guarantee of future results.

For the most part, Communication Services has not lost its top spot this year, thanks to considerable performance from a few mega-cap members; the two largest in the sector are Alphabet and Meta, which are the fourth- and sixth-largest companies in the S&P 500, respectively.