Sectors help investors and investment professionals more easily compare and understand the sector exposures of mutual funds and portfolios. At Morningstar, the stock market is divided into twelve specific industry sectors. Sectors are based on what companies actually do. That is, unlike some other sector classification systems, sectors aren't based on expected behavior of the stocks of these companies.
The sectors are as follows:
Information
% Software
Companies engaged in the design and marketing of computer operating systems and applications. Examples include Infosys Technologies, SAP Corporation,
% Hardware
Manufacturers of computer equipment, communication equipment, semiconductors, and components. Examples include Logitech, Spirent Communications, TomTom
% Media
Companies that own and operate broadcast networks and those that create content or provide it to other media companies. Examples include British Sky Broadcasting Group, ITV, Vivendi Universal
% Telecommunication
Companies that provide communication services using fixed-line networks or those that provide wireless access and services. Examples include Vodafone Group, BT Group, Deutsche Telekom
Service
% Health Care Services
Includes biotechnology, pharmaceuticals, research services, HMOs, home health, hospitals, medical equipment and supplies, and assisted living companies. Examples include Shire PLC, Siegfried GRP, Care UK
% Consumer Services
Includes retail stores, personal services, home builders, home supply, travel and entertainment companies, and educational providers. Examples include Debenhams, The Berkeley Group, Inchcape
% Business Services
Includes advertising, printing, publishing, business support, consultants, employment, engineering and construction, security services, waste management, distributors, and transportation companies. Examples include SR. Teleperformance, Saipem, Stagecoach Group
% Financial Services
Includes banks, finance companies, money management firms, savings and loans, securities brokers, and insurance companies. Examples include Merrill Lynch, Barclays, Invesco
Manufacturing
% Consumer Goods
Companies that manufacture or provide food, beverages, household and personal products, apparel, shoes, textiles, autos and auto parts, consumer electronics, luxury goods, packaging, and tobacco. Examples include Coca-Cola, Heineken, Hermes, Daimler Chrysler
% Industrial Materials
Includes aerospace and defense firms, and companies that provide or manufacture chemicals, machinery, building materials, and commodities. Examples include Rolls Royce, BBA Grp, Bayer Corporation
% Energy
Companies that produce or refine oil and gas, oil field service and equipment companies, and pipeline operators. Examples include Royal Dutch Shell, BP, Statoil
% Utilities
Electric, gas, and water utilities. Examples include National Grid, Centrica, United Utilities
For additional information, please see:
Morningstar Sectors Methodology
