It’s surprising that financials, which makes up 21% of SPY and is the largest market-cap sector, has the worst performance. Yet, basic materials, which makes up only 13% within SPY and is the smallest market-cap sector, is the second highest performer. Materials Select Sector SPDR (XLB), which is the index that tracks the basic materials sector, is up 23%. Financial Select Sector SPDR (XLF), which is the index that tracks the financials sector, is down 0.1% year-to-date.
These figures remind us that big players in various sectors don’t guarantee stellar performances.