What are the best sectors to invest in?
I calculated the 10-year averages of a range of quality growth metrics for the sectors in the $S&P 500(.SPX)$ .
The highest and most predictable share price growth is found in tech and healthcare, while utilities and materials have the lowest.
The highest and most predictable FCF growth is found in tech and communication.
The highest returns on capital are found in tech and consumer discretionary.
Real estate, utilities and materials have high payout ratios (not good for long term compounding). Tech is typically low.
The lowest CAPEX is found in tech and financials, the highest are found in utilities.
The lowest SBC is found in utilities and materials, the highest is tech.
The highest buybacks are found in industrials. Energy and real estate are quite dilutive.
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