Infographics

The 5 Fastest Growing Industries of the Next Decade

Published

4 years ago

July 29, 2021

Jenna Ross

This infographic is available as a poster.

Fastest Growing Industries

This infographic is available as a poster.

The Fastest Growing Industries of the Future

Today, the U.S. economy looks very different than it did hundreds of ago. While railroad stocks dominated in the 19th century, industries within technology and healthcare have grown substantially in recent years. As dynamics continue to shift, what will be the fastest growing industries of the future?

In this infographic from New York Life Investments, we uncover the industries projected to see the fastest growth rates over the next decade.

What Are the Fastest Growing Industries?

The U.S. economy is growing. From 2019 to 2029, total industry output is expected to rise by more than 20%.

Output is the value of final goods and services, as well as intermediary sales that are not typically included in GDP. In this case, output is based on chained 2012 dollars, which is a method of adjusting real dollar amounts for inflation over time using 2012 as a base year.

Below, we count down the fastest growing industries from 2019 to 2029, according to projections from the U.S. Bureau of Labor Statistics.

#5: Outpatient Care Centers

This industry is defined as facilities where the patient is not required to stay overnight, such as:

Mental health and substance abuse centers
Family planning clinics
Dialysis clinics
Multidisciplinary clinics

As patients demand more convenient and less expensive care, the popularity of outpatient care centers has grown. Advances in medical technology, such as minimally invasive surgeries, also allow for same day release. Here is what projected growth looks like for the industry.

Compound Annual Growth Rate	3.2%
2019 Output	$122B
2029 Output	$168B

However, investors may want to consider that health care leaders say implementing information technology (IT) is their greatest challenge.

#4: Computer System Design & Related Services

Companies that primarily provide IT expertise fall within this industry. Here are some examples:

IT consultants
Programming services
Video design
Web page development

The growth of e-commerce and digital marketing will likely contribute to the industry’s success. For instance, U.S. e-commerce climbed by 32% in 2020. Buoyed by these trends, computer systems design companies are expected to have a compound annual growth rate exceeding 3%.

Compound Annual Growth Rate	3.2%
2019 Output	$518B
2029 Output	$712B

On the other hand, investors may want to watch for the high capital costs some IT companies could incur to upgrade outdated platforms.

#3: Oil & Gas Extraction

This industry includes companies involved in the preparation of oil & gas, up to the point of shipment from the producing property. Some examples are:

Integrated oil & gas companies
Drilling contractors
Exploration & production companies

As inflation rises, extraction companies may benefit from higher prices and wider profit margins. The industry is expected to have the third highest growth rate over the next decade.

Compound Annual Growth Rate	3.4%
2019 Output	$474B
2029 Output	$660B

However, investors may want to consider the growing traction of sustainable investments. While oil demand isn’t projected to peak until 2035, the shift to clean energy may cause long-term challenges for the industry.

#2: Information Services

Businesses that supply, search for, or publish information fall within this industry. Some examples are:

News syndicates
Internet publishing
Broadcasting
Web search portals

Consumption of trusted news brands is growing, and paid subscriptions are increasing in richer Western countries. In addition, Google has committed at least $1 billion to license content from publishers for its News Showcase product. Here’s what potential growth looks like for information services companies.

Compound Annual Growth Rate	4.2%
2019 Output	$243B
2029 Output	$365B

On the other hand, ad revenue is falling in some segments. Investors researching this industry may want to consider platforms that are diversifying their revenue streams.

#1: Software Publishers

Topping the list of the fastest growing industries is companies that design, install, and provide post-purchase support for software. Some examples are:

Cybersecurity
Graphic design
Operating systems
Customer relationship management

Amid remote work and e-commerce growth, software enables companies to connect with employees and customers. The industry is projected to have a compound annual growth rate of almost 5% from 2019 to 2029.

Compound Annual Growth Rate	4.8%
2019 Output	$236B
2029 Output	$378B

At the same time, the industry has relatively low barriers to entry. Investors may want to watch for competitors, which can pop up anytime and threaten existing companies’ market share.

Industries of the Future

Investors with a long-term view can consider investments in these high potential areas. Propelled by market trends, the fastest growing industries fall within three broader sectors:

Technology
Healthcare
Energy

By looking to the future, investors may be able to capitalize on industries poised for growth.

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Infographics

A New Framework for Personalized Financial Portfolio Alignment

The MSCI Similarity Score compares a client’s financial portfolio to a model portfolio based on risk exposures, allowing for personalization.

Published

3 weeks ago

June 6, 2025

Jenna Ross

A waterfall chart showing the MSCI Similarity Score calculation from 100% perfect financial portfolio alignment being reduced by different risk exposures.

A New Framework for Personalized Financial Portfolio Alignment

There’s a tension between clients’ need for personalization and the one-size-fits-all approach of model portfolios. Traditionally, wealth management firms check financial portfolio alignment based on exact holdings. However, some level of mismatch with a model portfolio is inevitable due to client preferences and circumstances.

How can advisors meet the personalization needs of their clients at scale?

This graphic, created in partnership with MSCI Wealth, highlights a new framework called the MSCI Similarity Score that allows for customization.

Introducing the MSCI Similarity Score

With the MSCI Similarity Score, firms can assess financial portfolio alignment in a simple, single score. A score of 0 indicates no alignment, while a score of 100 indicates full alignment.

The score measures how similarly a client portfolio behaves compared to a firm’s model portfolio based on various factors. For equity, this includes things like the country and industry of a company, as well as the strategies used, such as targeting growth stocks. For instance, two U.S. technology growth stocks may behave similarly in response to market movements.

This approach allows for more flexibility to meet clients’ unique goals and risk appetites. It’s a similar idea to someone counting calories, rather than restricting their diet to specific foods.

Seeing the Score in Action

How does the MSCI Similarity Score work in practice? Consider a hypothetical U.S. client that an advisor is onboarding.

The advisor has assigned the client to a high-quality global equity model portfolio, and is checking alignment.

Name	Model Allocation	Client Allocation	Difference
Core Total US Stock Market ETF	--	30%	-30%
MSCI USA Quality Factor ETF	--	10%	-10%
Total Stock Market ETF	40%	--	40%
Core MSCI EAFE ETF	--	8%	-8%
MSCI Emerging Markets ETF	--	4%	-4%
MSCI INTL Quality Factor ETF	--	3%	-3%
MSCI ACWI ex-US ETF	20%	--	20%
7-10 Year Treasury Bond ETF	--	15%	-15%
Corporate Bond ETF	--	8%	-8%
1-3 Year Treasury Bond ETF	--	3%	-3%
Core US Aggregate Bond ETF	30%	--	30%
Private Equity Fund	--	10%	-10%
Corporate Lending Fund	5%	10%	-5%
Gold ETF	5%	--	5%

Specific funds and ETFs are for illustration only and do not constitute recommendations.

The client’s holdings are quite different from those of the model portfolio.

However, using the MSCI Similarity Score, the advisor compares the two portfolios on the factors driving their performance.

MSCI Similarity Score Breakdown

Starting from a perfect score of 100, each difference in risk exposure between the client’s portfolio and the model portfolio reduces the score.

Risk Factor	Score
Starting Point: Perfect Alignment	100.0%
Global Equity	-7.5%
Commodities	-4.9%
US Private Equity	-2.3%
U.S. Equity	-1.9%
USD Rates Level	-0.4%
Final Similarity Score	83.0%

The biggest difference between the two portfolios is their exposure to global equity risk.

With a strong Similarity Score of 83.0%, the advisor can see that the drivers of risk for both portfolios are closely aligned despite holding different funds.

A Flexible Approach to Financial Portfolio Alignment

The MSCI Similarity Score helps wealth management firms assess alignment between a client portfolio and model portfolio based on their behavior, rather than exact holdings.

This approach has a number of benefits.

Personalization: Wealth managers can customize client solutions without sacrificing portfolio alignment.
Transparency: Clients can see how their financial portfolio aligns with the firm’s recommendation, building their confidence in their investments.
Scalability: Firms can quickly see the score across multiple portfolios, helping them manage thousands of clients efficiently.

As client needs evolve, the MSCI Similarity Score is a simple and innovative way to customize financial portfolio alignment.

Learn more about the MSCI Similarity Score.

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Infographics

The 20 Most Common Investment Mistakes, in One Chart

Here are the top investment mistakes to avoid, from emotionally driven investing to paying too much in fees.

Published

2 years ago

November 7, 2023

Dorothy Neufeld

The 20 Most Common Investment Mistakes

No one is immune to errors, including the best investors in the world.

Fortunately, investment mistakes can provide valuable lessons over time, providing investors an opportunity to gain insights on investing—and build more resilient portfolios.

This graphic shows the top 20 mistakes to watch out for, according to the CFA Institute.

20 Investment Mistakes to Avoid

From emotionally driven investment decisions to paying too much on fees, here are some mistakes that investors commonly make:

Top 20 Mistakes	Description
1. Expecting Too Much	Having reasonable return expectations helps investors keep a long-term view without reacting emotionally.
2. No Investment Goals	Often investors focus on short-term returns or the latest investment craze instead of their long-term investment goals.
3. Not Diversifying	Diversifying prevents a single stock from drastically impacting the value of your portfolio.
4. Focusing on the Short Term	It’s easy to focus on the short term, but this can make investors second-guess their original strategy and make careless decisions.
5. Buying High and Selling Low	Investor behavior during market swings often hinders overall performance.
6. Trading Too Much	One study shows that the most active traders underperformed the U.S. stock market by 6.5% on average annually. Source: The Journal of Finance
7. Paying Too Much in Fees	Fees can meaningfully impact your overall investment performance, especially over the long run.
8. Focusing Too Much on Taxes	While tax-loss harvesting can boost returns, making a decision solely based on its tax consequences may not always be merited.
9. Not Reviewing Investments Regularly	Review your portfolio quarterly or annually to make sure you’re staying on track or if your portfolio is in need of rebalancing.
10. Misunderstanding Risk	Too much risk can take you out of your comfort zone, but too little risk may result in lower returns that do not reach your financial goals. Recognize the right balance for your personal situation.
11. Not Knowing Your Performance	Often, investors don’t actually know the performance of their investments. Review your returns to track if you are meeting your investment goals factoring in fees and inflation.
12. Reacting to the Media	Negative news in the short-term can trigger fear, but remember to focus on the long run.
13. Forgetting About Inflation	Historically, inflation has averaged 4% annually. Value of $100 at 4% Annual Inflation After 1 Year: $96 After 20 Years: $44
14. Trying to Time the Market	Market timing is extremely hard. Staying in the market can generate much higher returns versus trying to time the market perfectly.
15. Not Doing Due Diligence	Check the credentials of your advisor through sites like BrokerCheck, which shows their employment history and complaints.
16. Working With the Wrong Advisor	Taking the time to find the right advisor is worth it. Vet your advisor carefully to ensure your goals are aligned.
17. Investing With Emotions	Although it can be challenging, remember to stay rational during market fluctuations.
18. Chasing Yield	High-yielding investments often carry the highest risk. Carefully assess your risk profile before investing in these types of assets.
19. Neglecting to Start	Consider two people investing $200 monthly assuming a 7% annual rate of return until the age of 65. If one person started at age 25, their end portfolio would be $520K, but if the other started at 35 it would total about $245K.
20. Not Controlling What You Can	While no one can predict the market, investors can control small contributions over time, which can have powerful outcomes.

For instance, not properly diversifying can expose you to higher risk. Holding one concentrated position can drastically impact the value of your portfolio when prices fluctuate.

In fact, one study shows that the optimal diversification for a large-cap portfolio is holding 15 stocks. In this way, it helps capture the highest possible return relative to risk. When it came to a small-cap portfolio, the number of stocks rose to 26 for optimal risk reduction.

It’s worth noting that one size does not fit all, and seeking financial advice can help you find the right balance based on your financial goals.

Another common mistake is trading too much. Since each trade can rake up fees, this can impact your overall portfolio performance. A separate study showed that the most active traders saw the worst returns, underperforming the U.S. stock market by 6.5% on average annually.

Finally, it’s important to carefully monitor your investments regularly as market conditions change, factoring in fees and inflation. This will let you know if your investments are on track, or if you need to adjust based on changing personal circumstances or other factors.

Controlling What You Can

To help avoid these mistakes, investors can remember to stay rational and focus on their long-term goals. Building a solid portfolio often involves assessing the following factors:

Financial goals
Current income
Spending habits
Market environment
Expected returns

With these factors in mind, investors can avoid focusing on short-term market swings, and control what they can. Making small investments over the long run can have powerful effects, with the potential to accumulate significant wealth simply by investing consistently over time.

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