METV - Market Cap Vs. Earnings Weights For S&P 500 Sectors

2024-01-22 20:25:00 ET

Summary

• A table that Refinitiv publishes only occasionally is valuable since it gives perspective on the S&P 500 sector’s market cap weight in the benchmark, versus that same sector’s earnings.
• The problem in the late 1990s for large-cap tech wasn’t just the monstrous rally in the last 5 years of the decade, it was that the market cap ultimately dwarfed the earnings weight for technology in March 2000.
• Today, note tech’s market cap weight of 30%, versus tech’s earnings weight of 23%: readers can see the ratio is much more closely aligned today than the late 1990s.

Here’s a table that Refinitiv publishes only occasionally, but it’s valuable since it gives perspective on the S&P 500 sector’s market cap weight in the benchmark, versus that same sector’s earnings weight....

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