INVESTING | Sectors in the S&P 500
A Sector is a broad selection of companies with similar characteristics. An Industry is a subset of Sectors where companies are grouped in more specifically than Sectors.
Investors can use Sectors and Industries to efficiently classify and compare companies. Comparing companies with shared Sector and Industry allows an investor to identify relative strengths and weaknesses. Comparing companies across different Sectors and Industries can help identify relationships and trends.
Sector and Industry classifications for public companies are determined by the Global Industry Classification Standard (GICS), which is maintained by S&P and MSCI. Sectors and Industries are updated from time to time depending on a number of factors. On September 28, 2018, the Telecommunications Sector was replaced by the Communication Services Sector. On August 31, 2016, the Real Estate Sector was separated from the Financials Sector.
S&P 500 Sector weightings change over time as well as outlined in the chart below: