Tag Archives: consumer discretionary

Before & After The Sector Shakeup In The S&P 500 – Part 2

In part 1 of this post, the current sector weights, returns and correlations of the S&P 500 are shown, as well as a map depicting the expanded telecommunication services sector into communication services.  Now, here’s a deeper dive into what is moving and its impact. While the entire list of companies moving can be found Read more […]

Before & After The Sector Shakeup In The S&P 500 – Part 1

The Global Industry Classification Standard (GICS) was first developed in 1999 as a four-tiered, hierarchical industry classification system.  It is managed jointly by S&P Dow Jones Indices and MSCI to serve as the major global industry framework for investment research, portfolio management, and asset allocation.  Each company is assigned a single GICS classification at the sub-industry Read more […]

Introducing the S&P Global 1200 Communication Services Sector

The S&P Global 1200 can’t stay the same. Along with the S&P 500® and other headline indices from S&P DJI, many companies within the S&P Global 1200 will be given new sector assignments due to the upcoming Sept. 24, 2018, GICS® updates. The most visible change will be the renaming of the Telecommunication Services sector Read more […]

Relative Performance Impacts From the Introduction of Communication Services

S&P Dow Jones Indices will reshuffle stocks in September to reflect the revised structure of the Global Industry Classification Standard (GICS®) in its indices. The move will see telecommunication services replaced by a new sector called communication services. Its constituents will transfer from telecommunication, information technology (IT), and consumer discretionary. Exhibit 1 shows affected S&P Read more […]

Small Cap Premium Is 5th Biggest In History

Small caps are outperforming large caps (S&P 600 (TR) – S&P 500 (TR)) in H1 2018 by the most in eight years, since H1 2010, from growing  concerns over rising tariffs and general U.S. foreign trade policy. In the past four months, the smaller companies have outperformed larger companies by 10.1%, contributing to the 5th biggest Read more […]

A First Look Inside The Communication Services Select Sector Index

In accordance with the announced upcoming communication services sector change, the new Communication Services Select Sector Index is now live.  The select sectors are based on the Global Industry Classification Standard (GICS®) but have different construction rules than the sectors of the S&P 500.  In the Select Sectors, each index is made up of all Read more […]

Technology may be de-FANGed, but could the CHANDs leave you hanging?

It has not been a great start to the week for the technology sector, with large-cap tech stocks dragging down equity indices across the globe. With the current media focus on the industry behemoths, suitably arranged into fun acronyms (“FANGs” and so on), investors in the U.S. tech sector might be concerned about the risks Read more […]

Impact of GICS Changes to Pan Asian Sectors: BAT Moving Away From Information Technology

In November 2017, S&P Dow Jones Indices and MSCI announced revisions to the GICS® structure to be implemented in September 2018.[1] These changes are going to affect the consumer discretionary, information technology, and telecommunication services sectors. As a consequence, the Pan Asian internet giants BAT (Baidu, Alibaba, and Tencent) will be reclassified into the communication Read more […]

Why Mixing Media With Telecom Grows Communication

The means by which we communicate has grown over the past several years as a result of integration between telecommunications, media, and internet companies.  In response, S&P Dow Jones Indices and MSCI recently announced the expansion of the Telecommunications Services Sector into a new Communication Services Sector to be implemented after the close on Friday, September 28, 2018.  While the companies Read more […]

Under Armour Falters, but Consumer Discretionary Stays Positive

The sports apparel and footwear company Under Armour recently experienced a highly publicized loss of stock value, based on a couple of missteps.  The first misstep was falling short of Wall Street’s earning expectations, which caused multiple brokerage firms to downgrade their stock recommendations.  The second was inaccurate forecasting of the company’s revenue; it only Read more […]