By Dimensional Fund Advisors

Annual Rankings of Equity Sector Returns

2014 - 2023

Sectors represent groups of companies that make similar products or offer comparable services. Recent history shows the challenge of trying to pick “hot” sectors in advance.

• From 2014 to 2023, no sector was a consistent outperformer.

• Energy, the best performer in 2016, 2021, and 2022, delivered the worst annual returns six times. Tech, the leader in 2023, finished ninth out of 11 in 2022. Health care finished first in 2015, last in 2016, and first again in 2018.

• The absence of a reliable pattern in sector performance supports an “own them all” approach.

Holding stocks across all sectors puts investors in a position to capture higher returns where and when they appear.

Past performance is not a guarantee of future results. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio.

The annual returns are Russell 3000 Index Global Industry Classification Standard (GICS) sector returns. Real estate investment trusts (REITs) are shown as a separate category to illustrate their exclusion from certain funds. REITs are classified according to the GICS. Real Estate is excluded from the chart because it did not exist as a GICS sector category prior to September 2016.

S&P/MSCI changed the GICS methodology after market close September of 2018 to rename “Telecommunication Services” to “Communication Services” and to reclassify a number of companies to that sector. Dimensional reports these changes in company membership to Communication Services starting October 2018 but changes the name historically to Communication Services to maintain consistency.

Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes.

The GICS was developed by and is the exclusive property of MSCI and S&P Dow Jones Indices LLC, a division of S&P Global.

Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

Investment products: • Not FDIC Insured • Not Bank Guaranteed • May Lose Value

Dimensional Fund Advisors does not have any bank affiliates.