How Crowded Are Sectors and Industry Groups
Video
November 8, 2021
Jay Yao November 09, 2021 The MSCI Security Crowding Model estimates crowding in individual stocks and allows us to estimate the crowding of portfolios by aggregating the stock-crowding scores. Which sectors or industry groups are currently the most crowded? How have they changed over time? See the latest and historical crowding scores of the Global Industry Classification Standard (GICS®) sectors and industry groups using equal and market-capitalization weighting schemes.¹ How to interact with this plot: Use the radio button to select an index. Click on a particular sector icon to highlight the crowding scores in the time-series charts. The latest crowding scores for sectors and industry groups are shown in the bar charts. Move the mouse over the time-series charts to select a date and observe the corresponding crowding scores in the bar chars.
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¹GICS is the global industry classification standard developed my MSCI and S&P Global Market Intelligence.
The Pressure of the Crowd: Stress Testing Thematic Indexes
Flows into thematic investments during the first quarter of 2021 kept up their rapid pace from 2020. Investors could be concerned about crowding in this segment.
Which Factors May Be Crowded?
Our research has shown that factors with crowding scores greater than 1 were historically more likely to experience significant drawdowns in performance over subsequent months than factors with lower crowding scores.
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