S&P 500 Sector Annual Returns Reference Table
Direct answer: The S&P 500 has 11 GICS sectors: Information Technology, Healthcare, Financials, Consumer Discretionary, Industrials, Consumer Staples, Communication Services, Energy, Utilities, Real Estate, and Materials. Sector returns vary dramatically year to year: Energy returned +65.7% in 2022 while Communication Services fell −40.4% that same year. No sector consistently leads every year; diversification across sectors reduces return volatility.
S&P 500 Sector Annual Returns: 2022-2024
| Sector | 2022 | 2023 | 2024 est. |
|---|---|---|---|
| Information Technology | −28.2% | +57.8% | +35% |
| Healthcare | −2.0% | −2.0% | +5% |
| Financials | −12.4% | +12.2% | +30% |
| Consumer Discretionary | −37.0% | +42.0% | +14% |
| Industrials | −5.5% | +18.1% | +18% |
| Consumer Staples | −0.6% | −1.0% | +15% |
| Communication Services | −40.4% | +55.8% | +38% |
| Energy | +65.7% | −4.6% | +8% |
| Utilities | −0.6% | −7.1% | +24% |
| Real Estate | −26.2% | +12.4% | +5% |
| Materials | −12.7% | +11.7% | +12% |
| S&P 500 (total) | −18.1% | +26.3% | +25% est. |
Source: S&P Global: S&P 500 Index. Last verified: September 2026.
Frequently asked questions
Why does sector rotation matter for investors?
Sector returns vary enormously from year to year based on economic cycle, interest rates, and specific industry dynamics. Investors who concentrate in last year's top sector often underperform -- Energy's +65.7% in 2022 was followed by −4.6% in 2023. This "chasing performance" tendency is one of the most reliably documented investor behavior mistakes. Active sector rotation strategies (systematically overweighting early-cycle sectors like financials/industrials and late-cycle sectors like energy/materials) can add value but require correct economic cycle positioning. Most investors benefit more from maintaining broad sector diversification via S&P 500 index funds and accepting average sector returns rather than trying to select winning sectors.
Which sectors perform best in recessions?
Defensive sectors historically outperform during economic downturns: Consumer Staples (food, beverages, household products -- demand is relatively inelastic), Healthcare (medical spending doesn't follow economic cycles closely), and Utilities (electricity, water, gas -- essential services with regulated pricing). These sectors underperform in strong bull markets -- investors pay defensive "premiums" for their stability. The 2008 financial crisis: S&P 500 fell −37%; Consumer Staples fell only −15%, Healthcare fell −23% (both significantly outperformed). Cyclical sectors (Consumer Discretionary, Industrials, Materials) fall most in recessions as consumer spending and business investment both decline.
How has Information Technology's S&P 500 weight changed over time?
Information Technology has grown from approximately 6% of S&P 500 in 1990 to approximately 13-17% in 2000 (dot-com peak) to approximately 28-31% by 2024, making it by far the largest S&P 500 sector. Communication Services (which includes Alphabet and Meta) adds another approximately 8-9%, bringing combined tech-adjacent weight to approximately 37-40%. This concentration means S&P 500 performance increasingly tracks a small number of mega-cap technology companies. The top 10 S&P 500 holdings (all technology or tech-adjacent) represented approximately 35% of the index in 2024, the highest concentration since the dot-com era. This mega-cap concentration is both a driver of recent strong S&P 500 returns and a source of future valuation risk.