Understanding Sectors, Countries & Regions

Stock Sectors

There are 10 stock sectors in the CircleBlack stock sector framework, and every stock is assigned to one of these stock sectors:

1. Communications – Companies in the telecommunications business.
2. Consumer Discretionary – Companies that sell non-essential consumer goods, including companies in the retail, automobile, media, or hospitality business.
3. Consumer Staples – Companies that sell essential consumer goods, including companies in the food or beverage business.
4. Energy – Companies that produce energy-related goods or services, including companies in the oil, gas, or coal business.
5. Financials – Companies in the banking, investment management, insurance, or real estate business.
6. Health Care – Companies that produce medical goods or services, including companies in the pharmaceutical, biotechnology, or hospital business.
7. Industrials – Companies in the manufacturing, construction, transportation, or business services business.
8. Materials – Companies in the mining, chemicals, or material processing business.
9. Technology – Companies in the hardware, software, semiconductor, or information services business.
10. Utilities – Companies in the electricity, water, or gas distribution business.

The stock sector classification for funds is based on data about the stocks that the funds currently hold.

Bond Sectors

There are 4 bond sectors in the CircleBlack bond sector framework, and every bond is assigned to one of these bond sectors:

1. Government – Bonds issues by governments, government entities, or supranational organizations.
2. Corporate – Bonds issued by companies.
3. Municipal – Bonds issued by US states and municipalities.
4. Asset-Backed – Bonds whose payments are derived from a pool of underlying assets, including mortgage-backed securities.

The bond sector classification for funds is based on data about the bonds that the funds currently hold.

Countries and Regions

There are 6 regions of the world in the CircleBlack geographic framework, and every country is associated with one of those regions. Every stock is therefore assigned to one country and one region:

1. US & Canada – Companies based in the United States or Canada.
2. Latin America – Companies based in South America, Central America, the Caribbean, or Mexico.
3. Western Europe – Companies based in one of the developed market countries of Europe.
4. Eastern Europe – Companies based in one of the emerging market countries of Europe, including Turkey.
5. Middle East & Africa – Companies based in Africa or the Middle East, excluding Turkey.
6. Asia Pacific – Companies based in Asia (excluding the Middle East), Australia, or the Pacific Islands.

The country and region classification for funds is based on data about the stocks that the funds currently hold.