What are sector indices?

These indices give summaries and benchmarking data certain sectors or industries. It allows investors to track a stock against specific sectors. Where have you heard about sector indices? You may have heard in the news about certain companies or sectors lagging behind other peers.

Why did MSCI create a Sector index?

MSCI has developed a wide range of sector and industry indexes, across regions and countries, to support sector allocation decisions and to allow institutional investors to incorporate tactical views into their portfolios. How did MSCI create a Sector classification framework?

What are sector designations?

Sector designations can vary depending on the fund’s investment criteria and overall objective. The sector breakdown of a portfolio shows how much asset weights are allocated to what industry sectors. Sectors typically are considered to be broad classifications such as manufacturing, financial, or technology.

What is a sector in business?

A sector consists of one line of business that provides the same or similar product. Some common sectors include the financial sector or the technology sector. JPMorgan is in the financial sector while Apple is in the technology sector.