GICS Sectors are changingFollowing the annual review of the Global Industry Classification Standard (GICS) structure in 2017, S&P Dow Jones Indices and MSCI* announced some major upcoming changes to the way that sectors are classified.
On 24 September 2018, the S&P Telecommunication Services sector will be renamed Communication Services. It will be expanded to include companies from the Consumer Discretionary and Information Technology sectors. The changes are designed to better reflect the way we communicate today. Please download the infographic below for an illustration of how the sectors are changing.
For an illustration of how the sectors are changing, download the infographic »
- Boosts the presence of Communication Services and reduces the weight of the Technology sector in the S&P 500 Index.
- Adding some Technology and Consumer Discretionary names will increase the Communication Services sector’s global footprint, making it less US-focused.
- The new Communication Services sector will potentially provide investors a growth-oriented exposure with lower leverage, higher operating margin and potentially less volatile return on equity (ROE), making it less of a bond proxy.
* MSCI will implement the changes resulting from the 2018 GICS structure revisions in the MSCI Equity Indexes in one step as part of the November 2018 Semi-Annual Index Review.