All three sectors containing FAANG stocks were the biggest losers among US sectors last week. While all US sectors fell, Communication Services (host of Facebook, Alphabet/Google and Netflix), Consumer Discretionary (host of Amazon), and Information Technology (host of Apple), saw the largest drops, sliding more than 6% over four business days. Info Tech suffered the most, recording a weekly loss of 9%.
Despite the recent selloff, Consumer Discretionary (28%), Information Technology (25%) and Communication Services (11%) recorded the largest year-to-date cumulative returns as of last Thursday. In fact, only three other sectors produced positive year-to-date returns so far this year: Health Care, Materials and Consumer Staples. Communication Services, Consumer Discretionary and Information Technology were also among the least risky sectors. However, due to their large weights in the Russell 1000 index, together they contributed about 50% to the benchmark risk.
See graph from the US Equity Risk Monitor as of 10 September 2020: