Three Sectors are Outperforming in the US Market Right Now
Igor Manukhov - Jun 06, 2025
Only three sectors, Technology, Consumer Discretionary and Industrials, are currently outperforming the S&P 500.
The US market continues to recover, but only three sectors are currently outperforming: Technology, Consumer Discretionary and Industrials.
The chart below shows the relative performance of each US sector relative to the S&P500.
The colour coding is as follows:
- Blue and aqua bars indicate periods of outperformance relative to the S&P 500
- Light purple and purple bars indicate periods of underperformance relative to the S&P 500
- Orange bars indicate periods of neutral performance relative to the S&P 500
Sector symbols are:
- XLK – Technology
- XLY – Consumer Discretionary
- XLC – Communication Services
- XLE – Energy
- XLF – Financials
- XLI – Industrials
- XLB – Materials
- XLV – Health Care
- XLP – Consumer Staples
- XLU – Utilities
- XLRE – Real Estate
This table allows for a quick assessment of sector performance relative to the broader market to determine areas of opportunities. As you can see, all sectors except for Technology, Consumer Discretionary, Industrials and Real Estate are currently underperforming the S&P500. That is why we have been overweighting these three sectors in our U.S. allocations this year.
We will continue to invest in those outperforming sectors until the data signals a shift (i.e., blue bars turn purple). In addition to U.S. sectors, I track other areas (countries, asset classes, investment styles, etc.) in a similar format to quickly identify emerging opportunities.
