Question
PART ONE: Sector Performance Sector Portfolio Weighting (2) S&P Weighting (3) Differences in Weighting (4) Portfolio Return (5) S&P Return (6) Sector Over- or Under
PART ONE: Sector Performance
Sector | Portfolio Weighting | (2) S&P Weighting | (3) Differences in Weighting | (4) Portfolio Return | (5) S&P Return | (6) Sector Over- or Under Performance | (7) = (3) x (6) Sector Allocation Contributions |
Telecommunications Services | 3.10% | 5.90% | A 2.80% | 2.50% | 3.10% | K 0.60% | U 0.02% |
Utilities | 7.50% | 3.80% | B -3.70% | 3.10% | 1.90% | L -1.20% | V 0.04% |
Information Technology | 14.30% | 17.90% | C 3.60% | 4.90% | 3.20% | M -1.70% | W -0.06% |
Materials | 6.30% | 3.70% | D -2.60% | 4.80% | 5.10% | N 0.30% | X -0.01% |
Financials | 13.40% | 17.10% | E 3.70% | 6.20% | 4.80% | O -1.40% | Y -0.05% |
Consumer Discretionary | 12.70% | 13.50% | F 0.80% | 2.10% | 4.00% | P 1.90% | Z 0.02% |
Industrials | 14.10% | 11.90% | G -2.20% | 4.90% | 3.10% | Q -1.80% | AA 0.04% |
Energy | 8.40% | 8.00% | H -0.40% | 3.70% | 8.60% | R 4.90% | BB -0.02% |
Healthcare | 15.30% | 11.70% | I -3.60% | 9.80% | 5.70% | S -4.10% | CC 0.015% |
Consumer Staples | 4.90% | 6.50% | J 1.60% | 1.50% | 13.20% | T 11.70% | DD 0.19% |
4. Which sector made the greatest negative contribution to the portfolios performance? Explain why this investment made the greatest negative contribution based on the differences in weighting and the sector over- or under- performance
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