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Important Changes to the US Sector Classifications

by Sep 21, 2018Technical Analysis, All Articles

Today sees important changes to the GICs sector classifications in the US with the addition of the Communication Services sector ahead of the open on Monday 24th. There are lots of articles available online – including this from State Street Global Advisors explaining the changes in detail – but basically the impact will be seen in the Technology and Consumer Discretionary sectors and the ETFs that track them (eg $XLK, $XLY). Several major companies – including Facebook ($FB), Google ($GOOGL), Disney ($DIS) and Netflix ($NFLX) – will be moved to the new Communication Services sector (the SPDR ETF for this is $XLC), affecting about 10% of the S&P500 index by market value.

Here’s how the changes will affect the sector weightings of the S&P500 index, according to LPL Research:

Optuma Symbol Lists

If you have access to the US data and the Optuma Symbol Lists then the components of the existing sectors will be automatically adjusted, and the Communication Services sector added. This means that if you have a watchlist or RRG linked to Optuma’s S&P500 Technology symbol list then Facebook and Google will be removed and added to Communication Services symbol list.

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Darren Hawkins, MSTA

Darren Hawkins, MSTA

Senior Software Specialist at Optuma

Darren is the senior Software Specialist at Optuma based in Brisbane, Australia. Darren grew up in the UK and attended college in the USA where he earned a BA in Economics from St Mary's College of Maryland. He went on to spend a few years working at the Nasdaq Stock Market in Washington DC. Darren joined Optuma in 2009 after attending an introductory technical analysis course that used the software. 
 
Going on to live and work in Australia, the US, and the UK, Darren has a broad understanding of the individual needs of traders, portfolio managers, and investors utilising a wide range of methodologies and techniques. He instructs users all over the world, from experienced Wall Street traders and professional money managers to individual traders drawing their first trendlines.
 
In 2014 Darren passed the UK-based Society of Technical Analysts diploma and is working on attaining his CMT. When not looking at charts he keeps a keen eye on England's cricket team - especially when they are playing against Australia.
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1 Comment

  1. maciej stypik
    maciej stypik on October 1, 2018 at 6:56 am

    Fantastic Post!

    Reply

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