What are the US stock industry sectors?Stock market sectors

US stock industry sector: The US stock market is the largest financial investment market in the world and the highest popularity in the world.It has attracted investors from all over the world, including both investors and a large number of speculators.

Before entering the US stock market, the industry that understands the stocks in the US stock market can help investors better analyze the stock, such as the individual situation of the stock offering company, the performance of its performance in the industry, or according to different sectors according to different sectorsThe market trend to help investors judge investment goals.

So, which sections do U.S.stocks currently include?Which industries do they correspond to?After reading this article, you will learn about all 11 sectors included in the US stocks, its industry, and common stocks and ETF products.

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Directory of this article

• What is GICS?
• 1.Information Technology
• 2.Financial Services (Financials)
• 3.Medical care (HealthCare)
• 4.non-essential consumption
• 5.Industrial (INDUSTRIES)
• 6.Communications Services
• 7.Consume Staples
• 8.Energy (Energy)
• 9.Real Estate
• 10.Materials
• 11.Utilities (Utilities)
• More investment strategies

What is GICS?

GICS The full name is Global Industry Classes Standard The global industry classification standards were jointly developed by Morgan Stanley Capital International (MSCI) and Standard & Poor (SP) in 1999.

GICS is a classification method that defines the company’s attributes according to its operating business.Under this standard, GICS divides the company into different sectors (sectors), different industry groups (INDUSTRY Groups), different industries, and different industries (INDUSTRIES) and different industries.Sub-intusry, to systematically identify the operating attributes of each company and give each company a GICS code.

In the field of financial investment, GICS is the classification standard used by many investors, analysts and economists when measured and analyzed different companies.Through this standard, other companies in the Zhongtong Group are compared to obtain more accurate companies to compare companies.operation status.

At the same time, investors can also overview the trend of different sectors or different industry groups according to GICS to establish a diversified investment portfolio that is more suitable for them.

Different companies will be included or excluded by their own GICS code to affect the changes in the index of specific sectors or industries in the calculation process of some specific financial indexes and provide instructive data for market investment.

Since the establishment of GICS, it will be adjusted according to the continuous changes in the market.For example, in 2016, the real estate sector was added.In 2018, the telecommunications sector was changed to the Communication Services Sector.There are currently more than 26,000 stocks in the world to classify GICS, accounting for more than 95%of the total market value of listed companies in the world.In the US stock market, there are 11 sectors, 24 industry groups, 69 industries and 158 sub-industries.

11 sections include:

• Information Technology (Information Technology)
• Financial Services (Financials)
• Healthcare (HealthCare)
• Non-essential consumer goods
• Industry (Industries)
• Communication service (Communication Services)
• Consumer Staples
• Energy (Energy)
• Real Estate
• Materials (Materials)
• Utilities (Utilities)

1. Information Technology (Information Technology)

The information technology sector mainly covers different types of technology innovation companies, mainly including three categories: software(49%), hardware(30%),, semiconductor(twenty one%).

Notice: The above proportion uses the total market value of companies in each category.

Information technology GICS code is 45 Essence

The types of companies that are more segmented include: focusing on design software, providing software technical solutions, computer hardware, hardware technical support, and equipment, manufacturing and sales companies that may be involved in installation and post-use.Industry, including semiconductor manufacturers and companies used to produce semiconductor chip equipment.

This sector as of May 6, 2022, the fund’s fundamentals information:

Industry contained in information technology

Characteristics of the information technology industry

The proportion of the weight of the information technology sector in the entire market is 27.23% At present, the sector shared 471 only stock ^【source】 Essence

The advantages of this sector

• With the promotion of the fifth-generation (5G) honeycomb network and the rise of localization trends, it can help enhance the fundamental market;
• The potential of asset liabilities and profit growth is generally strong;
• Financing costs are generally low;
• With the continuous improvement of financial affairs technology and online retail business, the demand for infrastructure and software will continue to increase;
• When an enterprise provides productivity through technical investment, it is more likely to obtain long-term growth.

The disadvantage of this sector

• In the history of investment history, the valuation evaluation of the sector is too high;
• At present, the global inventory of semiconductors is limited, and there is a form of supply;
• The funds of this sector are highly concentrated in a few stocks;
• Antitrust litigation between the United States and Europe may have a fierce impact.

Common stocks and ETFs in the industry

• Apple Apple (AAPL)
• Microsoft Microsoft (MSFT)
• Amazon Amazon (AMZN)
• Pioneer Information Technology ETF Vanguard Information Technology ETF (VGT)
• ETF Fidelity MSCI Information Technology ETF (FTEC)
• SPDR Morgan Stanley Technology ETF SPDR Morgan Stanley Technology ETF (MTK)
• SPDR Standard Purcell Semiconductor ETF SPDR S & P Semiconductor ETF (XSD)

2. Financial Services (Financials)

The financial service sector mainly includes companies involved in monetary processing, the most important banking industry, as well as some financial sectors, such as insurance companies, brokerage companies, financial product providers, and real estate investment trust funds related to mortgage loans.Under normal circumstances, the policy changes of international interest rates and the Federal Reserve will have more obvious changes in the performance of financial service segments.

The GICS code of the financial service sector is: 40

This sector as of May 6, 2022’s plate fundamentals:

The industry contained in financial services

Characteristics of the financial service industry

The financial service sector currently accounts for 10.96%of the weight in the entire market.There are currently 1518 stocks in this sector ^【source】 Essence

Section advantage

• The rise in long-term or short-term interest rates will promote the rise of the sector;
• Compared with the level of historical evaluation and other sectors, the valuation of this sector has a good attraction.

Disadvantage

• The current high cash level and low loan levels are hindering the upward trend of the sector;
• When economic growth is close to its peak, it will suppress the overall performance of the market;
• Increasing the supervision of banking industry will also inhibit the rise of the plate;
• Fintech companies will transfer the market share of some traditional banks.

Common stocks and ETFs in the industry

• Visa (v)
• JPMORGAN Chase (JPM)
• Bank of America of America (BAC)
• FINANCIAL Select Sector SPDR Fund (XLF)

3.. Healthcare (HealthCare)

The medical care sector is mainly renting the field: including the development of biotechnology-based drugs and treatment, and the company that tests the analysis tools and supplies required for the clinical trials of these treatment, and including providing medical equipment and services, such as surgical supplies, Companies including medical diagnosis tools and health insurance.

The GICS code of the healthcare sector is: 35

This sector as of May 6, 2022’s plate fundamentals:

Industry contained in healthcare

Introduction to the health care industry sector

The proportion of the sector in the entire market is 14.20%.There are currently 408 stocks in this sector ^【source】 Essence

Section advantage

• Most companies in this sector have a strong balance sheet, and have sufficient cash for dividends and mergers and acquisitions;
• With the continuous growth of the global population aging and the continuous growth of emerging markets, it will help the rise of the sector;
• The needs of selective surgery, drug sales and medical equipment are gradually picking up;
• The current valuation is more attractive than the historical level of the sector.

Disadvantage

• The number of professionals providing nursing is decreased, and related costs are constantly increasing;
• New competitions from retailers Amazon Care will have a certain impact on the traditional income of the sector.

Common stocks and ETFs in the industry

• Unitedhealth group incorporald (unh)
• Johnson & Johnson (JNJ)
• Eli Lilly and Company (lly)
• Pfizer Inc.(PEF)
• ABBVIE Inc.(ABBV)
• Health Care Select Sector SPDR ETF (XLV)
• Invesco S & P 500 Equal Weight Health Care ETF (Ryh)
• Ishares Global Healthcare ETF (IXJ)

4.non-essential consumption

Non-essential consumer goods industry sector, English is Consumer Discretionary, which mainly includes goods based on consumer financial conditions (can it be explained again), so non-essential consumption is affected by factors such as the overall economic environment and interest rates.

This sector mainly includes a variety of physical retail companies and e-commerce companies including automotive sales companies, luxury sales companies, leisure products retail companies, etc., as well as service companies including hotels and restaurants.

The GICS code of the non-essential consumer sector is: 25.

This sector as of May 6, 2022’s plate fundamentals:

Industry contained in non-essential consumption

Non-essential industry characteristics

The proportion of the sector in the entire market is 11.45%.There are currently 290 stocks in this sector ^【source】 Essence

Section advantage

As employees return to work, the sector will usher in the upward trend;

The expansion of the online retail model will promote the rise of the retail industry;

Fast rise in housing prices will promote the positive development of the overall retail industry including home decoration companies, including home decoration companies;

Disadvantage

The trend of this sector is excessively concentrated in the field of Internet sales and automobiles;

Semiconductor shortages have brought tremendous pressure to the production of automobiles and consumer electronics;

High interest rates will reduce consumer consumption capacity, thereby suppressing consumption;

Common stocks and ETFs in the industry

• eBay inc.(eBay)
• Ford Motor Co.(F)
• Amazon Amazon.com, Inc.(AMZN)
• McDonald’s McDonald ’s Corporation (MCD)
• Tesla Tesla, Inc.(TSLA)
• Ishares u.S.Consumer Discretionary ETF (IYC)
• Invesco S & P Small Cap Consumer Discretionary ETF (PSCD)
• Proshares Online Retail ETF (ONLN)

5. Industry (Industries)

The industrial sector covers a variety of company types involving heavy equipment, which is mainly divided into three categories: capital goods, business and professional services, and transportation, including companies that provide aviation, railway, logistics transportation, national defense, construction engineering equipment, as well as relevant related to providing relevantServices and other companies.

The GICS code of the industrial sector is: 20.

This sector as of May 6, 2022’s plate fundamentals:

Industry included

Characteristics of industrial industry

The current weight of the sector accounts for 7.96%in the entire market.There are currently 467 stocks in this sector ^【source】 Essence

Section advantage

• In the environment of global economic growth, capital demand has continued to increase, and this sector is a direct beneficiary;
• With the rise of profit expectations, the performance of many companies in this sector is relatively stable in fundamentals;
• With the rise of geopolitical risks, the increase in defense expenses will drive the trend of the sector;
• Shengxing of global trade and online shopping has strongly stimulated the development of the transportation industry.

Disadvantage

• Rising fuel prices will adversely affect the transportation and aviation industry.

Common stocks and ETFs in the industry

• United Parcel Services, Inc.(UPS)
• Union Pacific Corporation (UNP)
• Raytheon Technologies Corporation (RTX)
• Honeywell International Inc.(HON)
• Caterpillar Inc.(CAT)
• Ishares U.S.Aerospace & Defense ETF (ITA)
• Invesco Aerospace & Defense ETF (PPA)

6.Communications Services

The communication service sector is currently the latest section of the GICS sector setting, including several industries that once belonged to other sectors.

This sector mainly includes telecommunications service providers, media companies and entertainment companies, involving traditional fixed telephone service providers, radio network service providers, traditional TV and broadcasting companies and emerging streaming companies.

The GICS code of the communication service sector is: 50.

In this sector as of May 2022’s plate fundamentals:

The industry contains the industry

Features of the communication service industry

The proportion of the sector in the entire market is 8.64%.There are currently 162 stocks in this sector ^【source】 Essence

Section advantage

• At present, social media has obvious competitive advantages compared to other industries;
• The promotion of 5G networks will further enhance the trend of the sector;
• Government investment in infrastructure will reduce the cost of 5G networks.

Disadvantage

• Some brands, such as Apple, etc., the interception ability of advertising may affect the income of social media companies in advertising business;
• The increasing strengthening of antitrust supervision will affect the income of search engines and social media companies;
• Streaming media services are risky to market saturation.With the addition of new competitive companies, prices may be restricted;
• The trend of the plate is mainly influenced by the two giants of Facebook and Google.Their trends have a significant impact on the overall trend of the plate;

Common stocks and ETFs in the industry

• Alphabet inc.(GOOGL)
• Meta Platforms, Inc.(FB)
• Verizon Communications Inc.(VZ)
• The Walt Disney Company (DIS)
• AT & T Inc.(T)
• Netflix, INC.(NFLX)
• Communication Services SELECT SECTOR SPDR Fund (XLC)
• Invesco S & P 500 Equal Weight Communication Services ETF (EWCO)
• Ishares Global Comm Services ETF (IXP)

7.Consume Staples

The essential consumer goods sector mainly includes the financial conditions of consumers, and they must all need goods and services, such as food, tobacco, beverages, family and personal care products.Manufacturing companies, as well as sales companies such as supermarkets.

The GICS code of the essential consumption sector is: 30.

This sector as of May 6, 2022’s plate fundamentals:

Industry contained in essential consumption

The characteristics of the essential consumer industry

The current weight of the sector accounts for 6.82%in the entire market.There are currently 154 stocks in this sector 【source】 Essence

Section advantage

• Companies in this sector usually have stable profitability;
• The companies in this sector are committed to reducing costs as much as possible to obtain better benefits;
• The restoration of the catering industry has stimulated the demand for food wholesale, which drives the overall section to rise;
• Some companies can pass on high costs to stabilize their yields.

Disadvantage

• Although it can be passed on a certain cost, companies in this sector generally face higher input costs;
• If interest rates rise higher than expected economic growth, it may lead to frustrating the rise of the industry.

Common stocks and ETFs in the industry

• Walmart Walmart Inc.(WMT)
• Procter & Gamble Company (PG)
• Cocoet Coca-Cola Company (KO)
• Pepsi Pepsico, Inc.(PEP)
• Costco WHOLESALE CORPORATION (COST)
• Philip Morris International Inc.(PM)
• Consumer Staples Select Sector SPDR Fund (XLP)
• Vanguard Consumer Staples ETF (VDC)
• Ishares u.S.Consumer Staples ETF (IYK)

8.Energy (Energy)

The energy sector is mainly aimed at the oil industry and natural gas industry, including oil exploration, production companies, as well as exploration, reserves and marketing companies of natural gas.It also involves other consuming energy manufacturers such as coal and ethanol, as well as exploration and reserves in exploration and reserves.And companies that provide equipment, materials and related services during the production process.

The GICS code of the energy sector is: 10.

This sector as of May 6, 2022’s plate fundamentals:

Energy-containing industry

Features of the energy industry

The current weight of the sector accounts for 4.17%in the entire market.There are currently 217 stocks in this sector 【source】 Essence

Section advantage

• In the current Russian and Ukraine War’s energy supply reduction environment, the trend of this sector is on the rise;
• Large, diversified energy companies have a strong balance sheet, and excellent costs and investment management self-regulating capabilities;
• The valuation of this sector is more attractive than other sections.

Disadvantage

• Petroleum prices have risen to the level of pressure on economic and oil demand;
• With the slowdown of global economic expansion, the sector may face the rise and slowing situation of rising;
• The strengthening of supervision may limit the rise of the sector;
• When the situation of the Russian and Ukraine war eases and the relaxation of Iranian sanctions, the recovery of oil supply may reduce the trend of the sector;
• With the promotion of clean energy, the demand for oil will be reduced.

Common stocks and ETFs in the industry

• Exxon Mobil Corporation (XOM)
• Chevron Corporation (CVX) Chevron Corporation (CVX)
• Shell company Shell PLC (Shel)
• Totalenergies se (TTE)
• British Petroleum Company BP P.L.C.(BP)
• Energy Select Section SPDR Fund (XLE)
• Vanguard Energy ETF (VDE)
• Alerian MLP ETF (AMLP)

9.Real Estate

The real estate sector mainly includes real estate development and managers, including real estate developers, real estate operating companies, etc.At the same time, trust funds for various physical real estate investment are also calculated into this sector, such as common industries, hotels, residential, office, and office and office and office and office and office and office.Medical and Real Estate Investment Trust Fund.

The GICS code of the real estate sector is: 60.

In this sector as of May 2022’s plate fundamentals:

The industry contained in real estate

Features of the real estate industry

The current weight of the sector accounts for 2.92%in the entire market.There are currently 368 stocks in this sector ^【source】 Essence

Section advantage

With the Fed’s interest rate cut, it is conducive to investors’ financing, so that REITs can bring good attractive high dividends;

With the rapid development of technical services and e-commerce, the upward trend in industries such as warehouses, data centers, and telecommunications towers is obvious;

With the rise of rental prices, the trend of a single residential real estate investment trust fund is strong;

Long-term population data statistics will promote the recovery of nursing and auxiliary living facilities to stimulate the overall trend of the industry;

Disadvantage

If the Fed starts to raise interest rates, the industry will be directly affected;

The development of e-commerce has caused physical stores to reduce, which affects the retail REIT;

House and office have reduced the demand for office, thereby reducing the demand for real estate in the office;

Common stocks and ETFs in the industry

• American Tower American Tower Corporation (AMT)
• Prologis, Inc.(PLD)
• Crown Castle International Corp.(CCI)
• Simon Property Group, INC.(SPG)
• DIGITAL Realty Trust, INC.(DLR)
• Nuveen Short-Term REIT ETF (Nure)
• Ishares Residence and Multisector Real Estate ETF (Rez)

10.Materials

The material sector mainly includes a multi-category commodity company for manufacturing and other applications, including mining companies, forest product companies, papermaking companies, chemical producers, building materials manufacturers, packaging manufacturers, and container manufacturers.A certain periodic value characteristics.

The GICS code of the material sector is: 15.

In this sector as of May 2022’s plate fundamentals:

The industry contains the industry

Features of the material industry sector

The current weight of the sector accounts for 2.77%in the entire market.There are currently 160 stocks in this sector ^【source】 Essence

Section advantage

• The overall valuation of this sector has a good attractiveness;
• With the strong trend of metal and agricultural prices, the expected profit growth will accelerate;
• With the policy support for clean energy and related infrastructure, the demand for industrial materials and related services will increase;
• At present, with sanctions against Russia, the prices of commodities, chemical/chemical/chemical fertilizers have risen.

Disadvantage

• When the economic growth is too fast, the Federal Reserve uses interest rate hikes to regulate, and the periodic price industry will lead to limited trend of the sector;
• High energy prices have increased the cost of chemical production, leading to decline in profits;
• Serious supply chain bottle neck period will limit the overall rise of the cover;
• Strict environmental regulations will have a certain negative impact on the industry.

Common stocks and ETFs in the industry

• Dupont de Nemours, Inc.(DD)
• BHP Group Limited (BHP)
• The Sherwin-Williams Company (SHW)
• Freeport-McMoran Inc.(FCX)
• Air Products and Chemicals, Inc.(APD)
• Ishares Global Materials ETF (MXI)
• Materials Select Sector SPDR Fund (XLB)

11.Utilities (Utilities)

The public institutional sector mainly covers different types of public institutional companies, such as providing power, water and natural gas power public institutions, water public institutions and natural gas public institutions that provide electricity, water and natural gas, and some independent power companies.Or renewable power producers are also classified as this sector.Public institutional companies usually have obvious regional characteristics.For example, Duke Energy Company’s main service scope is southeast of the United States, and the main service scope of Union Edison is the northeast region.

The GICS code of the public business sector is: 55.

This sector as of May 6, 2022’s plate fundamentals:

Industry contained in public undertakings

Features of the public institutional industry

The current weight of the sector accounts for 2.87%in the entire market.There are currently 124 stocks in this sector^【source】Essence

Section advantage

• In most economic environments, there is a relatively stable industry progress trend;
• As a capital-intensive plate, it only needs lower financing costs.

Disadvantage

• With the decrease in risk, the ability to return will be relatively reduced;
• The overall valuation is not too attractive for investors;
• At this stage, the legislative funds in the clean energy industry are not yet certain.

Common stocks and ETFs in the industry

• In the new era, energy company Nextera Energy (Nee)
• Duke Duke (duk)
• Southern Company The South Company (so)
• United Edison company Consolidated Edison, Inc.(ED)
• American Electrican Electric Power Company, Inc.(AEP)
• Nextra Energy, Inc.(Nee)
• Utilities Select Section SPDR Fund (XLU)
• Global X MSCI CHINA Utilities ETF (Chiu)

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