Important Changes to the US Sector Classifications
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.
Darren Hawkins, MSTA
Senior Software Specialist at Optuma