#Toutiao Creation Challenge#Why should we choose high-quality leaders in the industry? Each sector has opportunities. In comparison, the yield rate of each industry is indeed different. Combined with historical statistical data analysis, it is indeed important to choose an indust

The relationship between the yield and weight of the S&P 500 index industry

The market value of the industry sector and its yield are very small. The fastest-growing technology stock sector has a yield of only slightly above average, while the second-largest financial industry, which ranks second to the growth rate, has a yield of second to last. The increase in the weight of the financial industry and technology stock sectors is mainly due to the increase in the value of stocks in these sectors.

The weight of the healthcare and consumer goods sectors in the index has indeed increased, and their yields are also higher than average, but the weight of the energy sector has sharply dropped from 20% to 11%, and its 11.6% yield is also significantly higher than the S&P 500 index .

2. Can the expansion of the industry bring about a growth in yield? The rapid expansion of the

industry usually causes investors to pay too high prices and therefore reduce the return on investment. Therefore, industries that are stagnant or slow to grow are often overlooked by investors, and their prices are lower than fundamentals, while their returns are the highest.