Via Barron’s:
“Sector investing won’t be the same, either, after the unprecedented overhaul by S&P and MSCI of their Global Industry Classification System, or GICS, a widely used taxonomy that carves up the stock market into sectors, industry groups, industries, and subindustries. The biggest change: A new sector, communication services, is rising from the ashes of the telecommunication-services sector, which will go extinct. The communication sector will cherry-pick stocks from the tech, consumer-discretionary, and telecom bins. And it will be a biggie, the fourth-largest (tied with consumer discretionary) out of 11, behind information technology, health care, and financials. S&P plans to reconstitute its indexes after the market closes on Sept. 28. MSCI’s changes will go into effect on Dec. 3.”
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Source: Barron’s
