What Are the 11 Stock Market Sectors?

By Matthew Frankel, CFP – Updated Sep 26, 2025 at 11:07 AM | Fact-checked by Margo Winton Parodi

Key Points

Stock market sectors group similar industries, enabling straightforward comparisons for investing in companies.
Exploring specific sector ETFs and mutual funds can be a safer investment entry point.
Different sectors include Energy, IT, and Healthcare, each with unique top companies and functions.

A stock market sector is a group of stocks that have a lot in common with each other, usually because they are in similar industries. There are 11 different stock market sectors, according to the most commonly used classification system, known as the Global Industry Classification Standard (GICS).

We categorize stocks into sectors to make it easy to compare companies that have similar business models. Sectors also make it easier to compare which stocks are making the most money.

An infographic listing the 11 GICS stock market sectors with accompanying representative icons of each. — Image source: The Motley Fool

Investing in stock sectors

At a glance, the 11 GICS stock market sectors are:

1. Energy sector

The energy sector covers companies that do business in the oil and natural gas industry. It includes oil and gas exploration and production companies, as well as producers of other consumable fuels like coal and ethanol.

The energy sector also includes the related businesses that provide equipment, materials, and services to oil and gas producers. It doesn't include many renewable energy companies, which instead are considered utilities.

Large U.S. stocks in the energy sector are ExxonMobil (XOM -0.51%) and Chevron (CVX -0.60%).

2. Materials sector

The materials sector includes companies that provide various goods for use in manufacturing and other applications. You'll find makers of chemicals, construction materials, and containers and packaging within the materials sector, along with mining stocks and companies specializing in making paper and forest products.

Well-known materials stocks include paint maker Sherwin-Williams (SHW +0.68%) and chemicals manufacturer DuPont (DD -0.34%).

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6. Financials sector

The financials sector includes businesses that are primarily related to handling money. Banks are a key industry group within the sector, but you'll also find insurance companies, brokerage houses, consumer finance providers, and mortgage-related real estate investment trusts among financials. The financial sector also includes some of the best-known financial technology, or fintech, companies.

Warren Buffett's Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) and financial giant JPMorgan Chase (JPM +1.95%) are among the best-known stocks in the financials sector.

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Fintech

Fintech, short for financial technology, are a variety of software platforms, apps, and hardware solutions that leverage tech to make financial processes easier, more efficient and more profitable.

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8. Consumer staples sector

The consumer staples sector includes goods and services that consumers need, regardless of their current financial condition or the current economic climate. The category includes companies in the food, beverage, and tobacco industries, as well as household and personal care products. You'll also find retail companies that specialize in selling staples, such as grocery retailers, in this group.

Coca-Cola (KO -0.29%) and Procter & Gamble (PG +0.88%) are two of the most valuable consumer staples stocks in the U.S. market.

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10. Communication services sector

The communication services sector is among the newest of the GICS sectors and includes a couple of major areas that used to be part of other sectors. Telecommunication services providers make up one wing of the sector. At the other end are media and entertainment companies, including both older media like television and radio and interactive media via the internet and newer forms of communication.

Social media giant Meta (META +0.59%) and search engine pioneer Alphabet (GOOG +2.67%) (GOOGL +2.70%) are among the biggest stocks in communication services.

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Sector investing

If you are interested in a certain sector but are not ready to invest in a specific company within that sector, you can still participate in sector investing. Seek out lower-risk investments like exchange-traded funds (ETFs) and mutual funds that are specifically tied to a sector.

For example, if you aren't comfortable evaluating health care stocks but want exposure in your portfolio, an index fund that tracks the sector could be the best way to go. Sector investing plays an increasingly important role in the strategies that investors use today.

About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Matt Frankel has positions in Amazon, Berkshire Hathaway, and Simon Property Group. The Motley Fool has positions in and recommends Alphabet, Amazon, American Tower, Apple, Berkshire Hathaway, Chevron, JPMorgan Chase, Meta Platforms, Nvidia, Simon Property Group, and United Parcel Service. The Motley Fool recommends Duke Energy, Johnson & Johnson, RTX, Sherwin-Williams, and UnitedHealth Group and recommends the following options: long January 2026 $180 calls on American Tower and short January 2026 $185 calls on American Tower. The Motley Fool has a disclosure policy.