Repositioning for Slower Growth

Sector allocation can play an important role in investor outcomes when growth is slowing. Looking back to 1989, you will see that certain sectors exhibited greater resilience than others, not only when profits decelerated in general, but throughout recent US recessions. If you would like to learn more about a high quality, low volatility, dividend growth index that currently favors Health Care, Consumer Staples, Consumer Discretionary, & Tech while underweighting Banks, Materials, Energy, and Real Estate, you can download an overview by following the link below.

S&P 500 Sectors: Avg. Performance When Profits Decelerate

(Sept. 1989 – Dec. 2020)

Source: Richard Bernstein Advisors LLC, S&P Global, Bloomberg Finance LP. For index descriptions see Index Descriptions at the end of document. Dec 2020 was the end of the last full profits deceleration cycle. Real Estate performance is proforma as it was not a standalone sector until 09/30/2016 and was included within the Financials Sector. We use the FTSE Nareit All Equity REITS Total Return index as a proxy for its performance from 09/1989 through 10/2002 when GICS Real Estate Industry index performance becomes available for data from that point on. Communication Services was Telecom Services prior to GICS reclassification in 09/30/19.

INDEX DESCRIPTIONS: The following descriptions, while believed to be accurate, are in some cases abbreviated versions of more detailed or comprehensive definitions available from the sponsors or originators of the respective indices. Anyone interested in such further details is free to consult each such sponsor’s or originator’s website.

Source: St Louis Fed, Bloomberg Finance LP, as of 07/31/2022. Real Estate performance is proforma as it was not a standalone sector until 09/30/2016 and was included within the Financials Sector. We use the FTSE Nareit All Equity REITS Total Return index as a proxy for its performance from 09/1989 through 10/2002 when GICS Real Estate Industry index performance becomes available for data from that point on. Communication Services was Telecom Services prior to GICS reclassification in 09/30/19.

INDEX DESCRIPTIONS: The following descriptions, while believed to be accurate, are in some cases abbreviated versions of more detailed or comprehensive definitions available from the sponsors or originators of the respective indices. Anyone interested in such further details is free to consult each such sponsor’s or originator’s website.

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You are now leaving the O’Shares Investments website. By clicking, you acknowledge that you are someone authorized to undertake investment activities relating to the Exchange Traded Funds (ETFs). In addition, you understand that O’Shares Investments is not making any financial promotion or carrying out any regulated activity of said products. The following landing page may contain information concerning investments, products or other information. O’Shares Investments is not responsible for the accuracy or completeness of information on non-affiliated websites.
The material available on non-affiliated websites has been produced by entities that are not affiliated with O’Shares Investments. Descriptions of references to, or links to products or publications within any non-affiliated linked websites does not imply endorsement of that product or publication by O’Shares Investments. Any opinions or recommendations from non-affiliated websites are solely those of the independent providers and are not the opinions or recommendations of O’Shares Investments, which is not responsible for any inaccuracies or errors.
You are now leaving the O’Shares Investments website. By clicking, you acknowledge that you are someone authorized to undertake investment activities relating to the Exchange Traded Funds (ETFs). In addition, you understand that O’Shares Investments is not making any financial promotion or carrying out any regulated activity of said products. The following landing page may contain information concerning investments, products or other information. O’Shares Investments is not responsible for the accuracy or completeness of information on non-affiliated websites.
The material available on non-affiliated websites has been produced by entities that are not affiliated with O’Shares Investments. Descriptions of references to, or links to products or publications within any non-affiliated linked websites does not imply endorsement of that product or publication by O’Shares Investments. Any opinions or recommendations from non-affiliated websites are solely those of the independent providers and are not the opinions or recommendations of O’Shares Investments, which is not responsible for any inaccuracies or errors.