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S&P 500: Technology

As we continue on our journey of the sector breakdown of the S&P 500, we find ourselves at technology, the largest piece inside the S&P 500.

At 20.8% of the S&P pie, with several micro-industries combined under the technology banner, it’s no wonder this sector dominates the rest of the market. This sector includes manufacturers, hardware sellers, software companies, and also semiconductors.

If we look at some of the most popular companies in the world, we’ll find out they live in this technology sector — companies like Intel, Apple, IBM, and Microsoft. At 20%, give or take, it’s 10 times bigger than the smallest sector of the S&P 500.

When you start to build a portfolio of stocks, mutual funds, ETFs, and things in the equity space, you may notice many people are invested into the technology sector of the S&P 500. Some of them are used for growth. Some of them may even have dividend coming out in the form of yield.

The most important part to adding (or taking away) a part of your portfolio is making a decision that is beneficial for your financial needs. Maybe investing specifically in the technology sector of the S&P 500 is right for you. Then again, just because it’s right for another investor doesn’t mean it’s right for your situation.

Our investment professionals can help you learn the difference. Call Hoffman Financial Group today for a complimentary review!

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