Sectors

Communications

Communications is made up of companies that transmit text, audio, and visual data all around the globe and is split into three sub-sectors: equipment firms (such as Nokia), service providers (such as Verizon), and wireless communications companies (such as T-Mobile). Most successful Communications companies operate across these sub-sectors. This sector exhibits stable long term growth as its products are integral to everyday life; it also has consistently expanding reach with giants like Google and Meta functioning all over the world.

Consumer Discretionary

The Consumer Discretionary sector consists of companies that offer products and services primarily aimed at consumers who have the flexibility to spend discretionary income beyond essential necessities. This sector covers a diverse range of industries, providing goods and services that cater to people's preferences, lifestyle choices, and entertainment.

Consumer Staples

The Consumer Staples sector comprises companies that produce and distribute essential goods and products that are in constant demand regardless of economic conditions. These companies manufacture and sell items that are considered necessities, making them less sensitive to economic downturns compared to other sectors. The Consumer Staples sector includes a wide range of products, from household items and personal care products to food and beverages. The sector plays a vital role in providing the basic needs of consumers and is characterized by its stable and consistent demand.

Energy

The energy sector encompasses a wide range of industries involved in the production, distribution, and utilization of various forms of energy to meet the growing demands of homes, businesses, and industries. This sector includes companies engaged in activities related to traditional and renewable energy sources such as fossil fuels (coal, oil, and natural gas), nuclear power, hydroelectricity, wind energy, solar power, and other alternative energy technologies.

Financials

The Financials sector is made up of  companies that provide financial services to both institutional and retail customers. This encompasses a wide variety of firms such as banks, credit unions, asset managers, insurance companies, and even real estate firms. Financial services companies like these are essential to helping sustain a strong economy because they do things like issue loans so that businesses can grow or grant mortgages to homeowners. Some companies in this sector also help build savings for retirement, taking an important position in maintaining the stability of the economy.

Healthcare

The Healthcare sector is made up of firms providing a range of goods and services including pharmaceuticals, medical insurance, medical equipment, bio-technologies, and general health services. The prevailing aim of firms in the healthcare space is to increase the quality and accessibility of care that patients receive. This sector is heavily driven by technological advancements through investments in Research and Development (R&D), as well as public policy and population health demographics.

Industrials

The Industrials sector is comprised of companies that manufacture and distribute capital goods such as aerospace & defense, construction, engineering & building products, electrical equipment and industrial machinery. The sector includes commercial services and supplies, including printing, employment, environmental and office services. Transportation services include airlines, couriers, marine, road & rail and transportation infrastructure.

Information Technology

The Information Technology sector is made up of companies that primarily engage in Software & Services, Technology Hardware & Equipment, and Semiconductors & Semiconductor Equipment. It includes, but is not limited to, companies that develop and produce software, manufacture electronic equipment and instruments, provide commercial electronic data processing, and manufacture semiconductors and related products, as well as those that manufacture communication equipment and products including routers, telephones, and exchanges. A couple examples of companies that fall under Information Technology include Microsoft and Apple. 

Materials

The materials sector consists of a variety of commodity manufacturing industries. These firms locate, develop, and process raw materials like minerals, timber, and metals. Subindustries include chemicals, construction, packaging, paper and forest products, and metals and mining. Because this sector produces many of the materials used in construction, it can be very sensitive to changes in the business cycle.

Utilities

A utility company is any organization that has to do with distributing modern electrical, gas, water, sewage, and other basic life services to homes and businesses. Because Utilities companies provide many everyday necessities, you are probably a customer of many Utilities companies! Utilities is a highly-regulated business due to the sensitive nature of being able to deliver reliable services to customers and clients. The sector is propelled by having efficiencies of scale, synergies between business units, and positive government relations when dealing with negotiating price contracts.