Equity sector compositions have changed over time

Sources: FactSet and Wells Fargo Investment Institute, as of March 31, 2022. The Telecommunications Services sectors was replaced with the Communications Services sector on September 28, 2018. The composition of the indexes in 2001 and 2011 still reflect the prior sector composition. An index is unmanaged and not available for direct investment. See “Index Definitions and Asset Class Risk Disclosures” link above for index definitions.

Key Takeaways

  • The Information Technology sector weight has increased in all three indexes above — most significantly in the U.S. and emerging markets. A lower weight to the Information Technology sector in the MSCI EAFE Index may have contributed to its relative underperformance.
  • Information Technology led performance in the early months of the recovery, but positive sector performance has broadened to cyclical sectors as the recovery lengthened.