Sector & Industry Descriptions

May 05, 2021

Consumer Discretionary

The Consumer Discretionary Sector encompasses those industries that tend to be the most sensitive to economic cycles. Its manufacturing segment includes automotive, household durable goods, textiles & apparel and leisure equipment. The services segment includes hotels, restaurants and other leisure facilities, media production and services, and consumer retailing and services.

  • Auto Components
    The Auto Components Industry in the Consumer Discretionary Sector includes manufacturers of parts and accessories for automobiles and motorcycles, and manufactures of tires and rubber.
  • Automobiles
    The Automobiles Industry in the Consumer Discretionary Sector includes companies that produce passenger automobiles, light trucks, motorcycles, scooters, or three-wheelers. It does not include producers of heavy duty trucks classified in the Construction and Farm Machinery and Heavy Trucks industry, or producers of bicycles classified in the Leisure Products industry.
  • Distributors
    The Distributors Industry in the Consumer Discretionary Sector includes distributors and wholesalers of general merchandise not classified elsewhere. It includes vehicle distribution.
  • Diversified Consumer Services
    The Diversified Consumer Services Industry in the Consumer Discretionary Sector includes companies providing Educational Services, either online or through conventional teaching methods. It also includes Specialized Consumer Services such as residential, home security, legal, personal, renovation & interior design, consumer auctions, and wedding & funeral services not classified elsewhere.
  • Hotels, Restaurants & Leisure
    The Hotels, Restaurants, and Leisure Industry in the Consumer Discretionary Sector includes owners and operators of Casinos & Gaming, Hotels, Resorts, and Cruise Lines, Leisure Facilities, and Restaurants.
  • Household Durables
    The Household Durables Industry in the Consumer Discretionary Sector includes manufacturers of Consumer Electronics, Home Furnishings, Homebuilding, Household Appliances, and Housewares and Specialties.
  • Leisure Products
    The Leisure Products Industry in the Consumer Discretionary Sector includes manufacturers of leisure products and equipment including sports equipment, bicycles and toys.
  • Media
    The Media Industry in the Consumer Discretionary Sector includes companies providing Advertising, Broadcasting, Cable, Satellite, Movies, Entertainment, and Publishing services.
  • Multiline Retail
    The Multiline Retail Industry in the Consumer Discretionary Sector includes owners and operators of department stores and stores offering diversified general merchandise. It excludes hypemarkets and large-scale super centers classified in Food and Staples Retailing.
  • Specialty Retail
    The Specialty Retail Industry in the Consumer Discretionary Sector includes owners and operators of Apparel Retail, Computer & Electronics Retail, Home Improvement Retail, Specialty Stores, Automotive Retail, and Home furnishing Retail.
  • Textiles, Apparel & Luxury Goods
    The Textiles, Apparel and Luxury Goods Industry in the Consumer Discretionary Sector includes manufacturers of Apparel, Accessories, Luxury Goods, Footwear, and Textiles.

Consumer Staples

The Consumer Staples Sector comprises companies whose businesses are less sensitive to economic cycles. It includes manufacturers and distributors of food, beverages and tobacco and producers of non-durable household goods and personal products. It also includes food & drug retailing companies as well as hypermarkets and consumer super centers.

  • Beverages
    The Beverages Industry in the Consumer Staples Sector includes Brewers, Distillers & Vintners, and Soft Drinks.
  • Food & Staples Retailing
    The Food and Staples Retailing Industry in the Consumer Staples Sector includes Drug Retail, Food Distributors, Food Retail, and Hypermarkets & Super Centers.
  • Food Products
    The Food Products Industry in the Consumer Staples Sector includes Agricultural Products and Packaged Foods & Meats.
  • Household Products
    The Household Products Industry in the Consumer Staples Sector includes producers of non-durable household products (including detergents, soaps, diapers, and other tissue and household paper products not classified in the Paper Products Industry).
  • Personal Products
    The Personal Products Industry in the Consumer Staples Sector includes manufacturers of personal and beauty care products (including cosmetics and perfumes).
  • Tobacco
    The Tobacco Industry in the Consumer Staples Sector includes manufacturers of cigarettes and other tobacco products.

Energy

The Energy Sector comprises companies whose businesses are dominated by either of the following activities: The construction or provision of oil rigs, drilling equipment and other energy related service and equipment, including seismic data collection. Companies engaged in the exploration, production, marketing, refining and/or transportation of oil and gas products, coal and other consumable fuels.

  • Energy Equipment & Services
    The Energy Equipment & Services Industry in the Energy Sector includes Oil and Gas Drilling contractors, or owners of drilling rigs that contract their services for drilling wells. It also includes manufacturers of Oil and Gas equipment (including drilling rigs and equipment), and providers of supplies and services to companies involved in drilling, evaluation, and completion of oil and gas wells.
  • Oil, Gas & Consumable Fuels
    The Oil, Gas, and Consumable Fuels Industry in the Energy Sector includes Integrated Oil & Gas, Oil & Gas Exploration & Production, Oil and Gas Refining and Marketing, Oil and Gas Storage and Transportation, and Coal and Consumable Fuels.

Financials

The Financial Sector contains companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, and financial investment, and real estate, including REITs.

  • Capital Markets
    The Capital Markets Industry in the Financials Sector includes Asset Management & Custody Banks, Investment Banking & Brokerage, and Diversified Capital Markets.
  • Banks
    The Banks Industry in the Financials Sector includes diversified and regional Banks whose businesses are derived primarily from conventional banking operations, and have significant business activity in retail banking, and small and medium corporate lending.
  • Consumer Finance
    The Consumer Finance Industry in the Financials Sector includes providers of consumer finance services (including personal credit, credit cards, lease financing, travel-related money services, and pawn shops).
  • Mortgage REITS
    Mortgage REITS includes Real Estate Investment Trusts based on Mortgage-Backed Securities (MBS).
  • Diversified Financial Services
    The Diversified Financial Services Industry in the Financials Sector includes providers of a diverse range of financial services and/or with some interest in a wide range of financial services including banking, insurance and capital markets, but with no dominant business line. Also includes Multi-Sector Holdings companies with significantly diversified holdings across three or more sectors, none of which contributes a majority of profit and/or sales, and Specialized Finance providers such as credit agencies, stock exchanges and specialty boutiques.
  • Insurance
    The Insurance Industry in the Financials Sector includes Insurance Brokers, Life and Health Insurance Companies, Multi-line Insurance Companies, Property and Casualty Insurance Companies, and Reinsurance Companies.
  • Thrifts & Mortgage Finance
    The Consumer Thrifts and Mortgage Finance Industry in the Financials Sector includes financial institutions providing mortgage and mortgage related services (including financial institutions whose assets are primarily mortgage related, savings and loans, mortgage Government Sponsored Enterprises (GSEs), mortgage lending institutions, building societies, and companies providing insurance to mortgage banks).

Health Care

The Health Care Sector encompasses two main industry groups. The first includes companies who manufacture health care equipment and supplies or provide health care related services, including distributors of health care products, providers of basic health-care services, and owners and operators of health care facilities and organizations. The second regroups companies primarily involved in the research, development, production and marketing of pharmaceuticals and biotechnology products.

  • Biotechnology
    The Biotechnology Industry in the Health Care Sector includes companies primarily engaged in the research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering (including companies specializing in protein-based therapeutics to treat human diseases).
  • Health Care Equipment & Supplies
    The Health Care Equipment and Supplies Industry in the Health Care Sector includes manufacturers of health care equipment, devices, supplies, and medical products not classified elsewhere (including medical instruments, drug delivery systems, cardiovascular and orthopedic devices, diagnostic equipment, eye care products, hospital supplies, and safety needle and syringe devices).
  • Health Care Providers & Services
    The Health Care Provider and Services Industry in the Health Care Sector includes distributors and wholesalers of healthcare products not classified elsewhere, providers of Health Care Services, and owners and operators of Health Care Facilities and Managed Health Care.
  • Health Care Technology
    The Health Care Technology Industry in the Health Care Sector includes companies providing information technology services primarily to health care providers. Includes companies providing application, systems and/or data processing software, internet-based tools, and IT consulting services to doctors, hospitals or businesses operating primarily in the Health Care Sector.
  • Life Sciences Tools & Services
    The Life Sciences Tools and Services Industry in the Health Care Sector includes companies involved in drug discovery, development, and production continuum by providing analytical tools, instruments, consumables and supplies, clinical trial services, and contract research services (including firms primarily servicing the pharmaceutical and biotechnology industries).
  • Pharmaceuticals
    The Pharmaceuticals Industry in the Health Care Sector includes companies engaged in the research, development, or production of pharmaceuticals (including veterinary drugs).

Industrials

The Industrials Sector includes companies whose businesses are dominated by one of the following activities: The manufacture and distribution of capital goods, including aerospace & defense, construction, engineering & building products, electrical equipment and industrial machinery. The provision of commercial services and supplies, including printing, employment, environmental and office services. The provision of transportation services, including airlines, couriers, marine, road & rail and transportation infrastructure.

  • Aerospace & Defense
    The Aerospace and Defense Industry in the Industrials Sector includes manufacturers of civil or military aerospace and defense equipment, parts, or products (including defense electronics and space equipment).
  • Air Freight & Logistics
    The Air Freight and Logistics Industry in the Industrials Sector includes companies providing air freight transportation, courier, and logistics services (including package and mail delivery and customs agents). It does not include companies classified in the Airlines, Marine, or Trucking industries.
  • Airlines
    The Airlines Industry in the Industrials Sector includes companies providing primarily passenger air transportation.
  • Building Products
    The Building Products Industry in the Industrials Sector includes manufacturers of building components, home improvement products, and equipment. It does not include manufacturers of lumber and plywood classified under Forest Products, and cement and other materials classified under Construction Materials.
  • Commercial Services & Supplies
    The Commercial Services and Supplies Industry in the Industrials Sector includes companies providing Commercial Printing, Environmental and Facilities Services, Office Services and Supplies, Diversified Support Service and Security and Alarm Services
  • Construction & Engineering
    The Construction and Engineering Industry in the Industrials Sector includes companies engaged primarily in non-residential construction (including civil engineering companies and large-scale contractors). It does not include companies classified in the Homebuilding industry.
  • Electrical Equipment
    The Electrical Equipment Industry in the Industrials Sector includes companies that produce electric cables and wires, electrical components or equipment; and manufacturers of power-generating equipment and other heavy electrical equipment (including power turbines, heavy electrical machinery intended for fixed-use and large electrical systems).
  • Industrial Conglomerates
    The Industrial Conglomerates Industry in the Industrials Sector includes diversified industrial companies with business activities in three or more sectors, none of which contributes a majority of revenues. Stakes held are predominantly of a controlling nature and stake holders maintain an operational interest in the running of the subsidiaries.
  • Machinery
    The Machinery Industry in the Industrials Sector includes manufacturers of Construction, Farm and Industrial Machinery, and Heavy Trucks.
  • Marine
    The Marine Industry in the Industrials Sector includes companies providing goods or passenger maritime transportation. It does not include cruise ships classified in the Hotels, Resorts & Cruise Lines industry.
  • Professional Services
    The Professional Services Industry in the Industrials Sector includes companies providing Human Resource and Employment Services as well as Research and Consulting Services.
  • Road & Rail
    The Road and Rail Industry in the Industrials Sector includes companies primarily providing goods and passenger railroads and trucking transportation (including vehicle rental and taxi companies).
  • Trading Companies & Distributors
    The Trading Companies and Distributors Industry in the Industrials Sector includes trading companies and other distributors of industrial equipment and products.
  • Transportation Infrastructure
    The Transportation Infrastructure Industry in the Industrials Sector includes operators of airports and companies providing related services, owners and operators of roads, tunnels, and rail tracks, and marine ports owners and operators.

Information Technology

The Information Technology Sector covers the following general areas: firstly, Technology Software & Services, including companies that primarily develop software in various fields such as the Internet, applications, systems, databases management and/or home entertainment, and companies that provide information technology consulting and services, as well as data processing and outsourced services; secondly Technology Hardware & Equipment, including manufacturers and distributors of communications equipment, computers & peripherals, electronic equipment and related instruments; and thirdly, Semiconductors & Semiconductor Equipment Manufacturers.

  • Communications Equipment
    The Communications Equipment Industry in the Information Technology Sector includes manufacturers of communications and networking equipment and products (including LANS, WANS, routers, telephones, switchboards, and exchanges).
  • Technology Hardware, Storage & Peripherals
    The Technology Hardware, Storage & Peripherals Industry in the Information Technology Sector includes manufacturers of cellular phones, personal computers, servers, electronic computer components and peripherals (including data storage components, motherboards, audio and video cards, monitors, keyboards, printers and other peripherals).
  • Electronic Equipment, Instruments and Components
    The Electronic Equipment, Instruments and Components Industry in the Information Technology Sector includes producers of electronic equipment, instruments, electronic components and electronic equipment mainly for the OEM (Original Equipment Manufacturers) markets (including analytical, electronic test and measurement instruments, electronic components, connection devices, equipment not classified elsewhere, and distributors of technology hardware and equipment).
  • IT Services
    The IT Services Industry in the Information Technology Sector includes providers of information technology and systems integration services not classified in the Data Processing and Outsourced Services or Internet Software and Services industries. It includes information technology consulting, information management services, and providers of commercial electronic data processing and/or business process outsourcing services such as back-office automation.
  • Semiconductors & Semiconductor Equipment
    The Semiconductors and Semiconductor Equipment Industry in the Information Technology Sector includes manufacturers of semiconductors, semiconductor equipment, and related products.
  • Software
    The Software Industry in the Information Technology Sector includes application, systems, and home entertainment software companies engaged in developing and producing software designed for specialized applications for the business or consumer market.

Materials

The Materials Sector encompasses a wide range of commodity-related manufacturing industries. Included in this sector are companies that manufacture chemicals, construction materials, glass, paper, forest products and related packaging products, and metals, minerals and mining companies, including producers of steel.

  • Chemicals
    The Chemicals Industry in the Materials Sector includes producers of commodity, diversified, fertilizers, agricultural, and specialty chemicals. It also includes manufacturers of industrial gases.
  • Construction Materials
    The Construction Materials Industry in the Materials Sector includes manufacturers of construction materials including sand, clay, gypsum, lime, aggregates, cement, concrete, and bricks. Other finished or semi-finished building materials are classified in the Building Products industry.
  • Containers & Packaging
    The Containers and Packaging Industry in the Materials Sector includes manufacturers of metal, glass, or plastic containers (including corks and caps), and manufacturers of paper and cardboard containers and packaging.
  • Metals & Mining
    The Metals and Mining Industry in the Materials Sector includes producers of aluminum and related products; companies engaged in diversified metals and mining production or extraction of gold, precious metals, minerals and related products; and producers of iron, steel and related products.
  • Paper & Forest Products
    The Paper and Forest Products Industry in the Materials Sector includes manufacturers of timber, related wood products, and all grades of paper. It includes manufacturers of lumber for the building industry, and excludes companies specializing in paper packaging.

Real Estate

  • Real Estate Investment Trusts (REITs)
    The Real Estate Investment Trusts (REITS) Industry in the Financials Sector includes companies or trusts engaged in Diversified, Industrial, Mortgage, Office, Residential, Retail, or Specialized REITs.
  • Real Estate Management & Development
    The Real Estate Management & Development Industry in the Financials Sector includes companies engaged in diversified real estate activities, real estate operating and development companies and real estate services.

Communication Services

The Communications Services Sector contains companies that provide communications services primarily through a fixed-line, cellular, wireless, high bandwidth and/or fiber optic cable network.

  • Diversified Telecommunication Services
    The Diversified Telecommunication Services Industry in the Telecommunication Services Sector includes Alternative Carriers, providers of communications, and high-density data transmission services primarily through a high bandwidth/fiber-optic cable network. It includes Integrated Telecommunication Services, operators of primarily fixed-line telecommunications networks, and companies providing both wireless and fixed-line telecommunications services not classified elsewhere.
  • Wireless Telecommunication Services
    The Wireless Telecommunication Services Industry in the Telecommunication Services Sector includes providers of primarily cellular or wireless telecommunication services, including paging services.
  • Media
    The Media industry will contain four existing sub-industries: Advertising, Broadcasting, Cable & Satelite, and Publishing.
  • Entertainment
    The Entertainment industry will contain Movies & Entertainment and Interactive Home Entertainment.
  • Interactive Media & Services
    The Interactive Media & Services Industry and Sub-Industry will include companies engaged in content and information creation or distribution through proprietary platforms, where revenues are derived.

Utilities

The Utilities Sector encompasses those companies considered electric, gas or water utilities, or companies that operate as independent producers and/or distributors of power.

  • Electric Utilities
    The Electric Utilities Industry in the Utilities Sector includes companies that produce or distribute electricity (including nuclear and non-nuclear facilities).
  • Gas Utilities
    The Gas Utilities Industry in the Utilities Sector includes companies whose main charter is to distribute and transmit natural and manufactured gas. It does not include companies primarily involved in gas exploration or production classified in the Oil and Gas Exploration & Production industry, or diversified midstream natural gas companies classified in the Oil and Gas Refining, Marketing and Transportation industry.
  • Independent Power and Renewable Electricity Producers
    The Independent Power and Renewable Electricity Producers Industry in the Utilities Sector includes companies that operate as Independent Power Producers (IPPs), Gas and Power Marketing and Trading Specialists, and/or Integrated Energy Merchants. It includes companies that engage in the generation and distribution of electricity using renewable sources, including, but not limited to, companies that produce electricity using biomass, geothermal energy, solar energy, hydropower, and wind power. It does not include companies manufacturing capital equipment used to generate electricity using renewable sources.
  • Multi-Utilities
    The Multi-Utilities Industry in the Utilities Sector includes utility companies with significantly diversified activities in addition to core Electric Utility, Gas Utility, and/or Water Utility operations.
  • Water Utilities
    The Water Utilities Industry in the Utilities Sector includes companies that purchase and redistribute water to the end-consumer (including large-scale water treatment systems).