AltaVista Inependent Research reports on the outlook for S&P-based exchange traded funds (ETFs).  It’s quite interesting to look at the industries that comprise the S&P 500 and see how they did individually versus the overall S&P 500.

Below is the composition of the S&P 500 based on market capitalization, with 2006 returns.

100% SPDR (SPY) 14%

10% Consumer Discretionary SPDR (XLY) 19%
9% Consumer Staples Select SPDR (XLP) 12%
10% Energy Select SPDR (XLE) 17%
22% Financial Select SPDR (XLF) 16%
12% Health Care Select SPDR (XLV) 7%
11% Industrial Select SPDR (XLI) 11%
3% Materials Select SPDR (XLB) 18%
19% Technology Select SPDR (XLK) 11%
4% Utilities Select SPDR (XLU) 17%

As the above illustrates, the bottom two performers, XLV and XLK, make up 31% of SPY, while the top two performers, XLY and XLB, only make up 13% of the benchmark.  

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.