Sectors
Small caps reveal a shifting economy
The US has experienced a massive shift in the nature of its economy over the last half century. The US was traditionally a manufacturing-focused economy, supplying a variety of raw materials and consumer and industrial products domestically and abroad. Today, data shows the US economy is most heavily represented by service-oriented sectors such as Technology, Health Care and Financials and less so by the industrial sectors such as Energy, Basic Materials and Industrials. However, the leading sectors are always in a state of change indicative of economic, consumer, and industry trends. Third quarter saw the addition of two companies to the Russell 2000.
Exhibit 6: Third quarter IPOs
Quarter end (%) (as of 9/30/2022)
Exhibit 7: Quarterly sector weightings
Quarter end (%) (as of 9/30/2022)
Exhibit 8: Sector performance review
Total return (%) (as of 9/30/2022)
Exhibit 9: Sector contribution to return
Year to date (%) (as of 9/30/2022)
Exhibit 10: Sector history
Monthly weightings (%) (as of 9/30/2022)