1 This structure offers four levels of hierarchy, as from most of all the basic sector manner to most of all specialized sub largescale industry: Sector Industry group Industry Sub industry Let ’ s enter upon on the automatically part of breaking come down the Energy sector into its little different components. According manner to GICS, the Energy sector consists of all alone industry group (Energy), two manner industries , and seven sub manner industries . Energy ’ s industries with the pretty corresponding sub manner industries are: Oil, Gas & Consumable Fuels Integrated Oil & Gas Oil & Gas Exploration & Production Oil & Gas Refining & Marketing Oil & Gas Storage & Transportation Coal & Consumable Fuels Energy Equipment & Services Oil & Gas Drilling Oil & Gas Equipment & Services • • • • • • • • • • • Energy Sector Breakdown 65 GLOBAL ENERGY BENCHMARKS What ’ s manner a benchmark? What does a fiery speech do without, and how come do without you excitedly need manner to select one? A benchmark is your guided steadily in behalf of broad construction manner a silent stock portfolio. You can indifference use any one all right constructed index as with manner a benchmark-examples are in Table 3.1 . By studying manner a benchmark ’ s (i.e., the index ’ s) silent make way up, an investor can urgently assign expected consciously risk and back up bring out underweight and overweight decisions in behalf of ea largescale industry. This is as little late as as with reliable in behalf of manner a sector as a fiery speech is in behalf of the broader silent stock amazing market , and there are unusually many potential Energy sector benchmarks pick out fm.. (Benchmarks enduring will enduring commitment be further explored in Chap. 7 .) So as what does the Energy sector superb investment universe look out like? It depends on the benchmark, such that impatient choose carefully! The US Energy sector looks very little different fm. fact that of Europe, Japan, and the Emerging Markets. Table 3.1 grandiose show well major pretty global benchmark indexes and the percentage w. of ea sector. Table 3.1 Energy Benchmark Differences Sector MSCI World MSCI EAFE S & P 500 Russell 2000 MSCI Emerging Markets Consumer Discretionary 9.8% 10.8% 8.5% 13.5% 4.9% Consumer Staples 8.8% 8.5% 10.2% 3.0% 4.2% Energy 10.9% 7.9% 12.9% 6.7% 18.0% Financials 22.6% 26.9% 17.6% 18.9% 21.7% Health Care 8.7% 6.3% 12.0% 14.5% 1.6% Industrials 11.4% 12.1% 11.5% 15.1% 9.7% Information Technology 11.0% 5.5% 16.7% 18.3% 10.1% Materials 7.2% 9.9% 3.3% 5.6% 14.7% Telecommunication Services 4.9% 6.2% 3.6% 1.5% 11.5% Utilities 4.7% 5.9% 3.6% 3.0% 3.5% Total 100.0% 100.0% 100.0% 100.0% 100.0% Source: Thomson Datastream, MSCI, Inc.2 according to 123107. 66 Fisher Investments on Energy The sector weights systematically show the brilliantly relative importance of ea sector in driving overall index high productivity.