We've often discussed in this space the ten sectors of the S&P 500, as a way to analyze what's going on in the market. But before long, that number will be up to eleven: At the end of August in 2016, S&P will add a sector on real estate.
To this point, real estate investment vehicles such as the mall ownership group Simon Property Group have been subsumed under the financial sector. The financial sector is the second-largest in the index at this point, with more than 16 percent of the S&P's value.
This will have some meaning for investors beyond just the way we analyze the market's moves. Many funds concentrate on one sector or another, so many instruments focusing on the financial sector will soon remove real estate from those portfolios. We shall see whether that helps or harms the financial sector a year and a half from now.
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