Definition of 'Sector Breakdown'
The mix of sectors within a fund or portfolio, typically expressed as a percentage of the equities asset class. Sector designations vary slightly depending on the criteria used, but the most common equity sectors include:
Investopedia explains 'Sector Breakdown'
Sectors are a broader classification than industries, although some companies (especially more modern ones) can make a case for being "counted" in several different sectors. Companies within the same sector tend to have relatively high correlations in their rate of revenue and earnings growth, stock price performance, and earnings forecasts - especially over short- and medium-term time periods.
A diversified stock portfolio should hold stocks across most, if not all, sectors. Market weightings of sectors can be found by looking at the composition of a broad index like the S&P 500.
Articles Of Interest
We look at how the market signals impending economic cycles and sector performance during each stage.
Should you diversify or focus? Read on to decide which will work best for you.
Find the investing "sweet spot" by combining these two styles.
If you're an investor who likes to understand how and why your investment products work, this article is for you!
The growth of mutual funds isn't always cause for celebration. Read on to find out why.
Long the purview of institutional investors and ultra-wealthy individuals, financial services firms are making alternative investment strategies available to a wider audience of investors. Understanding ...
Use stop-loss and take-profit points to your advantage with these strategies.
Learn about the man who mentored Warren Buffett, who eventually became the investing "Oracle of Omaha".
Find out what type of international fund might suit your needs in gaining exposure to foreign markets.
Factor investing delivers risk adjusted results that deliver the same or better investment returns as the overall market but with less risk.