S&P 500 Sector Performance (as of 03/31/08)

Chart of the Week for April 11 - April 17, 2008

Individual sectors of the stock market can post good and bad years for investors. A sector can outperform over an extended period and then underperform in subsequent periods, trailing all other sectors. The graph above compares the performance of the S&P 500 Index to its ten underlying industry sectors.

For the year ended March 31, 2008, the overall S&P 500 Index, which follows the stocks of 500 of the largest U.S. companies, returned -5.08%. The Energy and Consumer Staples sectors posted the highest returns over the one-year period, earning 22.13% and 9.29%, respectively. The lowest returns for the one-year period came from the Financials and Consumer Discretionary sectors, which earned negative 27.94% and negative 17.71%, respectively.

While sectors with the best performance may appear attractive today, sectors move in and out of favor with the market. For example, Telecommunication Services was among the best performing sectors for the year ended March 31, 2007, but it ranked among the worst sectors for the year ended March 31, 2008. On the other side, one of the worst returning sectors in the year ended March 31, 2007 was Industrials and it ranked fourth out of ten sectors for the year ended March 31, 2008.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 1-800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.