Nikkei 225 Index Sector Weightings

The table below lists the Sector weightings of the Nikkei 225 stock index. The largest sector of the index is the Information Technology sector which makes up 24.23% of the index (Jan 1st, 2024). Consumer Discretionary sector holds the second place with a weighting of 20.97%. It’s important to remember that Nikkei 225 is not market cap weighted which means that the index weightings do not fully represent the actual sector market values of the Japanese stock market as a whole.

Nikkei 225 Index – GICS Sector Weightings

GICS Sector 12/31/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018
Communications 9.45% 11.06% 9.50% 11.42% 9.08% 9.37%
Consumer Discretionary 20.97% 20.38% 18.79% 21.81% 20.56% 21.10%
Consumer Staples 5.42% 6.38% 6.22% 6.50% 9.10% 11.74%
Energy 0.28% 0.29% 0.25% 0.20% 0.33% 0.46%
Financials 2.66% 3.11% 2.03% 1.98% 2.40% 2.62%
Health Care 10.27% 13.12% 12.20% 14.44% 13.05% 11.36%
Industrials 18.39% 19.44% 19.32% 18.37% 19.36% 19.89%
Information Technology 24.23% 18.83% 23.95% 17.18% 17.56% 13.70%
Materials 6.59% 5.70% 6.13% 6.49% 6.28% 7.16%
Utilities 0.17% 0.16% 0.13% 0.15% 0.19% 0.25%
Real Estate 1.57% 1.53% 1.47% 1.47% 2.08% 2.35%

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Nikkei 225 Stock Index – The benchmark for Japanese equity market

Nikkei 225 is the most followed index for the Japanese stock market. One very peculiar thing about the index is that it is price weighted rather than being market cap weighted. Unlike major U.S indices whose components are weighted based on their market value, Nikkei 225 assigns weights to its companies based on their stock price. This means that companies with a relatively few outstanding shares and therefore higher absolute share price have a large weightings no matter what their market cap is. For example the largest component, Fast Retailing Ltd, makes up 10.58% of the whole index (12/31/2022) and Toyota Motor Corp makes up just 1.19% despite being more than four times more valuable than Fast Retailing.

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