S&P 500 Sector Breakdown: Materials

We’ve recently been exploring each of the 11 sectors of the S&P 500, and now we’ve made our way to the materials sector. Materials are the smallest sector in the S&P 500, making up only 2.5% of the index.¹ “Companies within the materials sector provide the raw material needed for other sectors to function.”² The sector specifically covers things like construction materials, metals, mining, and paper with companies like DowDuPont and International Paper. 

Chemicals are the largest industry with the materials sector, accounting for 71% overall.¹ “A key feature of GICS is that it can evolve: its structure is intended to reflect the current state of the equity investment universe.”¹ The materials sector experienced a 10-year growth rate of 38.41% through the first quarter of 2020.³ However, through the session of market gains we’ve experienced very recently, materials was the only sector to experience a decline.⁴ 

While it may be the smallest sector in the index, materials is still going to be a part of your portfolio as you build out a diversified set of stocks mutual funds, or ETFs. To help create the right investment strategy for you, reach out to our team of financial professionals. We have the tools and knowledge to help you navigate the market and answer any questions you have. Let’s find the right investment strategy for you today! 

1. https://www.spglobal.com/spdji/en/education/article/sector-primer-series-materials/ 

2. https://corporatefinanceinstitute.com/resources/knowledge/finance/the-sp-sectors/ 

3. https://www.thebalance.com/what-are-the-sectors-and-industries-of-the-sandp-500-3957507 

4. https://markets.businessinsider.com/news/stocks/stock-market-news-today-indexes-jobless-claims-economic-recovery-coronavirus-2021-2-1030044106