Victoria Bazir
⬤ S&P 500 sector performance in 2025 shows a pretty stark divide between winners and losers. Looking at year-to-date numbers with dividends included, communication services is crushing it with a 36.0% return. Tech comes in second at 26.1%, and industrials rounds out the top three at 18.6%. Here's the kicker—these are the only sectors actually outperforming the broader S&P 500, which is up 18.2% so far this year.
⬤ The data also shows maximum drawdowns, giving us a peek at how bumpy the ride has been. Communication services might be leading the pack, but it took a 22.7% hit at its worst point. Tech got hammered even harder with a 26.2% drawdown, while industrials held up better with just a 17.6% decline. The S&P 500 itself saw an 18.8% maximum drawdown—less volatile than you'd expect compared to some individual sectors.
⬤ The rest of the sectors are in the green but can't keep up with the index. Utilities pulled 16.8%, healthcare managed 13.0%, and financials came in at 12.4%. Energy gained 10.0%, while materials and consumer discretionary delivered modest 6.7% and 6.1% returns. Consumer staples and real estate brought up the rear with 4.3% and 3.9% gains. Some of these laggards also got roughed up pretty badly—discretionary dropped 26.3% at one point, and real estate fell 14.2%.
⬤ What this really shows is how concentrated 2025's gains have been. Communication services and tech are doing the heavy lifting while everything else struggles to keep pace. This kind of uneven performance across sectors could keep driving market swings as the year goes on.
Victoria Bazir
