Sector

A broad segment of the economy that groups companies with similar business activities. The Global Industry Classification Standard (GICS) divides the market into 11 sectors: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Information Technology, Communication Services, Utilities, and Real Estate. Sector analysis helps traders identify which areas of the economy are leading or lagging, and sector ETFs like the SPDR series make it easy to express directional views on entire industries.