Never used such broad Industry definitions when considering diversification in my HYP, except possibly in the case of financial companies - a hangover from 2008.
If I have a quick look at my holdings using the strict Industry definitions in the article, none contain more than 20%. Highest is Consumer Staples at a touch over 18%, then Financials at 16%. Lowest is Healthcare at under 4%, with Consumer Discretionary and Industrials both just under 6%.
In terms of Industry type, it's 43% Defensive, with the rest split equally between Cyclical and Highly Cyclical. It's all a bit broad brush though and basing rules on it seems impractical. Are AGR and PHP Highly Cyclical Real Estate companies, or are they actually a better fit in the Defensive Healthcare sector? Are TRIG and UKW Highly Cyclical Renewable Energy companies or in the UK are they closer to the Defensive Electricity Utilities? Or as ITs, are they neither?
There is always room for judgement - I'd be inclined to have all the above as Defensives, which would substantially reduce my exposure to Highly Cyclical Industries compared to the definitions in the link. Conversely, how's everyone's Defensive Telecomms investments in the UK doing
?
EEM.