Breaking Down S&P 500 Returns by Sector Since 2020 Election

The S&P 500’s gains since Nov. 3, 2020 reflect an annual return of nearly 16%, an impressive figure. The strong returns are particularly impressive considering the 2022 stock market decline, which was the largest annual drop since 2008.

While each sector has seen significant gains since the last presidential election, the top-performing sector returned nearly seven times the gains of the lowest-performing sector. Energy climbed an impressive 256% while utilities gained 37% between Nov. 3, 2020 and Nov. 1, 2024. 

Exposure to the broader energy sector can be added with the Energy Select Sector SPDR Fund (XLE A), the iShares U.S. Energy ETF (IYE A-), or with subsector ETFs like the Alerian MLP ETF (AMLP A-) and the VanEck Oil Services ETF (OIH B+). 

The Utilities Select Sector SPDR Fund (XLU A) is the largest utilities sector ETF, but other category peers include the Global X US Infrastructure Development ETF (PAVE B), the Vanguard Utilities ETF (VPU A+), and the FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA A). Interestingly, utilities has been among the top performing sectors year to date through Nov. 1. 

In addition to energy, two other sectors increased more than 100% since the last presidential election: Information technology and financials. Information technology has climbed 128% and financials has gained 102%.

ETFs including the Vanguard Information Technology ETF (VGT A), the Technology Select Sector SPDR Fund (XLK A), and the iShares U.S. Technology ETF (IYW A) can provide exposure to the broader technology sector. Meanwhile, the VanEck Semiconductor ETF (SMH B), the First Trust NASDAQ Cybersecurity ETF (CIBR A-), and the Amplify Cybersecurity ETF (HACK B+) can offer more targeted exposure to areas within the larger sector. 

The financials sector is represented by the Financial Select Sector SPDR Fund (XLF A) and the Vanguard Financials ETF (VFH A+). The Invesco KBW Bank ETF (KBWB B) and the SPDR S&P Regional Banking ETF (KRE A-) can provide exposure to financials subsectors. 

Industrials, communications services, and materials climbed 79%, 66%, and 52%, respectively, since the last presidential election. 

Funds in these categories include the Industrial Select Sector SPDR Fund (XLI A), the Communication Services Select Sector SPDR Fund (XLC A), and the Materials Select Sector SPDR Fund (XLB A).

Finally, health care, consumer staples, consumer discretionary, and real estate are up 50%, 45%, 39%, and 38%, respectively. 

Exposure to these sectors can be found with the Health Care Select Sector SPDR Fund (XLV A), the Consumer Staples Select Sector SPDR Fund (XLP A), and the Real Estate Select Sector SPDR Fund (XLRE A-).

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