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2007 Sector Total Returns for the Dow Jones Total Market Index
By JLP | January 2, 2008
Here’s a look at the total returns for the ten sectors that make up the Dow Jones Total Market Index (along with the total return for the total market index):
As you can see, it was a bad year for both the Consumer Services and Financial Services sectors. Unfortunately the Financial Services sector represents 22.40% of the aggregate index. Here’s a look at the sector weightings of the aggregate index:
It’s not clear to me whether or not the sectors are adjusted during the year.
Finally, here’s how the index would have performed had the sectors been equally-weighted:
That’s quite a difference. Of course it’s not like this every year. Last year just happened to be a year when a heavily-weighted sector underperformed the market and dragged down the index.
Topics: Index Funds, Investing | 5 Comments »
January 2nd, 2008 at 5:16 pm
It seems that peak oil is here to stay for sometime now that we have hit $100 a barrel oil. Before, the issue was that turmoil in the 70s caused prices to spike where now, we do have turmoil but also underlying fundamental reasons such as China, Russia, and India needing oil for their own national consumption. Also, what are your thoughts on investing in foreign currencies and gold? During the last few years, these sectors have out performed the market in every category.
January 2nd, 2008 at 9:09 pm
Thanks – this is good information. It seemed that the financial sector was weighing down everything in the market, but this counters that perception. It also shows that without the two “dogs”, 2007 would have been a better than average year for the DJ.
January 2nd, 2008 at 9:52 pm
Not the greatest market year, but the major indices were all positive. What I worry about is that I would expect the indices with less stocks (the Dow and NASDAQ) to perform in line with or somewhat worse than the indices with many stocks (S&P 500 or Wilshire 5000); when the opposite happens, I get concerned it’s not all that healthy a market…
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Ryan
http://uncommon-cents.net/
January 2nd, 2008 at 10:10 pm
Those are the first numbers I have seen regarding the stock market for last year. I guess i should be happy with my 7.5% return I got last year. Anyway, thanks for the great post and please check out my new personal finance blog if you have a chance. Thanks.
http://learningtoberich.blogspot.com/
August 31st, 2008 at 1:28 pm
Hi, where can i get the Dow Jones Index Sector History data? Thanks