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In the ICB classification Sectors are the third level under Supersectors and above Sub-Sectors. Companies with similar business activities, products, and economic sensitivities are in the same Sector or a similar Sector.

Companies listed on the Stock Market, are classified into 4 different levels. In the ICB classification from FTSE Russell this starts at Industry, then Supersectors, Sectors and Sub-Sectors. Thus, Sector is the Third level of this classification and represents a group of companies with similar business activities such as, Banking, Insurance, Chemicals and economic sensitivities, Cyclical v Non-Cyclical. Dividing the Stock Market into the different Sectors, assists in understanding sector dynamics and comparing intra sectorial valuations. Investing in Stocks should not be limited to inter Sector Valuations. A Software Company such as Microsoft, has little in common with a Mid Cap Software Company. The Valuation comparison should be made with a similar sized Large Cap Company with similar Valuation and Risk Metrics, such as Volatility.


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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

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Smartest Data aims to be your go-to source for analysis and commentary on Investments, Personal Finance and the Global Stock Markets. The aim is to provide our readers with insightful and actionable information for independent minded Investors.  Dissecting  the daily avalanche of Data produced by the Stocks Market by using data Websites  and Apps available to people at home. Join us, to be Driven by Data to navigate the Investment universe markets and make better informed investment decisions.