S&P 500 Sector Performance (as of 6/30/09)

Chart of the Week for July 10 - July 16, 2009

Similar to the stock market as a whole, returns for individual sectors of the stock market may go up and down. A sector may outperform over an extended period and then underperform in subsequent periods. The chart above compares the performance of the S&P 500 Index to its ten underlying sectors for the years ended June 30, 2008 and June 30, 2009.

For the year ended June 30, 2009, the overall S&P 500 Index, an index consisting of 500 companies representing larger capitalization stocks traded in the U.S., returned -26.21%, with every sector posting a loss. Of all the sectors, the Energy sector retreated the most, with a return of -41.44%. The Materials and Financials sectors also experienced significant losses with returns of -38.88% and -38.58%, respectively.

It is interesting to note that while Energy was the worst performing sector during the period ended June 30, 2009, it was the best performing sector during the 12-month period ended June 30, 2008. During that period, the Energy sector returned 24.84%, compared to the overall S&P 500 Index return of -13.12%. Oil prices rose dramatically during the first half of 2008, driving up the prices of some Energy stocks, before crashing back down during the third quarter of that same year, bringing those same Energy stocks down as well.

Market and sector returns fluctuate from year to year depending upon a variety of factors, which are hard to predict. Therefore, it is important to understand the principles of investing before establishing an investment strategy to be sure that it is consistent with one's personal goals and time horizon. As the past twelve months have shown, all sectors can produce negative returns and investing includes the possibility of losses as well as gains.

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.

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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 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.