S&P 500 Sector Performance

Chart of the Week for Aug 10 - August 16, 2007

As highlighted by the April 27th, 2007 Chart of the Week, individual sectors of the stock market can post good and bad years for investors. A sector can outperform over an extended period and then underperform in subsequent periods, trailing all other sectors. The graph above compares the performance of the S&P 500 Index to its ten underlying industry sectors.

For the twelve months ending July 31, 2007, the overall S&P 500 Index, which follows the stocks of 500 of the largest U.S. companies, returned 16.13%. The Materials and Information Technology sectors posted the highest returns over the one-year period, earning 31.06% and 30.25%, respectively. The lowest returns for the period came from Financials and Health Care, earning 3.18% and 7.51%, respectively.

While the sectors with the best performance may appear attractive today, sectors move in and out of favor. The top two sectors in the last twelve months (August 1, 2006 - July 31, 2007) were Materials and Information Technology, but were only ranked fourth and tenth out of ten sectors in the prior twelve month period (August 1, 2005 through July 31, 2006). On the other side, the lowest returning sector in the last twelve months was Financials and it ranked third out of ten sectors in the prior twelve month period.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.

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The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.