Why You Should Invest In All The Sectors, Not Just One
How To InvestSectors represent groups of companies that make similar products or offer comparable services. Recent history shows the challenge of trying to pick “hot” sectors in advance.
- From 2016 to 2025, no sector was a consistent outperformer.
- Energy, the best performer in 2016, 2021, and 2022, delivered the worst annual returns four times. Tech, the leader in 2023, finished ninth out of 12 in 2022. Health care finished last in 2016 and first in 2018.
- The absence of a reliable pattern in sector performance supports an “own them all” approach.
Holding stocks across all sectors puts investors in a position to capture higher returns where and when they appear.