The U.S. stock market is made up of many different types of companies across a multitude of industries. To assist investors, Standard & Poor’s and MSCI have grouped individual stocks into sectors, with each sector representing one slice of the stock market pie. Historically, the classification system was divided into 10 sectors (consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services and utilities) but starting next month, real estate will officially become its own distinct sector. The U.S. stock market pie will still be the same size—it will now just be divided into 11 instead of 10 slices.
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