The strategy of sector-based investing allows investors to focus on specific segments of the economy. All public companies can be grouped and divided into sectors, which are based on their primary business activities. GICS or the Global Industry Classification Standard 1 is a classification standard developed by MSCI and S&P Dow Jones Indices to provide investors with consistent and exhaustive industry definitions.
According to GICS, currently there are 11 sectors encompassing several industries 2, as listed below:
1. Energy: Energy Equipment & Services, Oil, Gas & Consumable Fuels
2. Materials: Chemicals, Construction Materials, Containers & Packaging, Metals & Mining, Paper & Forest Products
3. Industrials: Aerospace & Defense, Building Products,Construction & Engineering, Electrical Equipment, Industrial Conglomerates, Machinery,Trading Companies & Distributors, Commercial Services & Supplies, Professional Services, Air Freight & Logistics, Passenger Airlines,Marine Transportation, Ground Transportation, Transportation Infrastructure
4. Consumer Discretionary: Automobile Components, Automobiles, Household Durables,Leisure Products, Textiles, Apparel & Luxury Goods, Hotels, Restaurants & Leisure, Diversified Consumer Services, Distributors, Broadline Retail, Specialty Retail
5. Consumer Staples: Consumer Staples Distribution & Retail, Beverages, Food Products, Tobacco, Household Products, Personal Care Products
6. Health Care: Health Care Equipment & Supplies, Health Care Providers & Services, Health Care Technology, Biotechnology, Pharmaceuticals, Life Sciences Tools & Services,
7. Financials: Banks, Financial Services, Consumer Finance, Capital Markets, Mortgage Real Estate Investment Trusts (REITs), Insurance
8. Information Technology: IT Services, Software, Communications Equipment, Technology Hardware, Storage & Peripherals, Electronic Equipment, Instruments & Components, Semiconductors & Semiconductor Equipment
9. Communication Services: Diversified Telecommunication Services, Wireless Telecommunication Services, Media, Entertainment, Interactive Media & Services
10. Utilities: Electric, gas, water, Multi-Utilities, Independent Power and Renewable Electricity Producers
11.Real Estate: Different REITS – Diversified, Industrial, Hotel & Resort, Office, Health Care, Residential, Retail and Specialized, Real Estate Management & Development
Interactive Advisors offers a variety of portfolios across different sectors for investors who are keen to explore this strategy. Have a look at a preview of our sector-based portfolio offerings. Whether you are looking to invest in Energy or in Materials, or interested in exploring Real Estate or Healthcare, we have got you covered. For a complete list of all our portfolios, take your pick from here.
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VIA SHUTTERSTOCK
FOOTNOTES AND SOURCES:
1 https://www.msci.com/indexes/index-resources/gics
2. https://www.msci.com/documents/1296102/23c8ec04-fd1c-3518-e04c-4aa37027889d
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