This is the best S&P 500 stock market sector to own during the summer, according to recent history

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The best stock market sector to own during the summer, according to recent history

Only three sectors have posted returns above 3% during summers since 2010, with health care, tradable in theETF, just behind tech and utilities. Health care also has a more defensive equity profile than tech and is a sector investors often turn to when they want to play it safer in the stock market, but like tech, health-care stocks have had more of a recent run, with the sector now only 3% off its most recent 52-week high.

Every sector of the market has posted an average return that is positive during these summer months, and other sectors might be worth a look with tech gains coming so quickly, but recent market history has not been kind to the market's biggest dog: energy. The energy sector is still near-40% off its most recent annual sector high, but it is the only S&P 500 sector to post an average return that is negative across the past decade of summers.

A broad bet on the S&P 500 as a whole has been positive in these periods with such solid performance across the majority of sectors, with an average return of 1.60% during the summer, and the S&P has traded positive in 7 of the past 10 years, according to Kensho data. The , meanwhile, has posted an average return of 1.33% over the past decade of summers, positive 60% of the time.

 

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