Tag Archives: GICS

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 […]

A Closer Look at Indices Country Classifications

As large sums of global money flows now follow global indices, it is important to understand how global index providers decide on country classifications and country weightages. A global equity index typically has two components, a developed market index and an emerging market index. Until the nineties, emerging market investments were not necessarily mandatory for Read more […]

Most S&P and Dow Jones Islamic Indices Outperformed Conventional Benchmarks in Q1 Driven by Strength in the Technology Sector

Most S&P and Dow Jones Shariah-compliant benchmarks outperformed their conventional counterparts in Q1 2018, as the information technology sector—which tends to be overweight in Islamic Indices—led the market by a wide margin, and financials—which is underrepresented in Islamic indices—matched the returns of the broad market. The Dow Jones Islamic Market World Index and S&P Global Read more […]

Low Volatility and Market Regime Shifts: Lessons From the First Quarter

Since antiquity, people have measured time in months. Unsurprisingly, investors tend to evaluate performance in monthly increments. This can be troublesome, as we will see in the case of low volatility, particularly during market regime changes. Low volatility strategies are designed to provide investors with protection in falling markets and participation in rising markets. Disappointments Read more […]

What’s In A Sector?

Following an index announcement stating Nektar (NKTR) among other stocks would be moving to the S&P 500 prior to the open on March 19, 2018, an inquiry came in about the index impact of NKTR on the S&P SmallCap 600 Health Care Index performance.   Given the stock rose over 70% in 2018, it seemed reasonable to 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 […]

Security Selection & Sector Allocation Effects of Equal Weighting the S&P 500®

Constituents of the S&P 500 Equal Weight (EW) and S&P 500 are identical, but the EW version is rebalanced quarterly so that every company has equal representation after the rebalance.  That often results in significantly different performance between the two indices, because equal weighting gives more representation to smaller stocks and alters the distribution of Read more […]

Real Estate and Financials Sectors Strike Divergent Paths Following GICS® Restructure

The past few months have served as a timely example of why it is beneficial for real estate to stand alone as its own equity sector. Between Sept. 16, 2016, when real estate was carved out of financials as its own GICS sector, and the end of January 2017, the S&P 500® Financials gained 22%, Read more […]

Inside the S&P 500: The Real Estate Sector

Part of the power of the S&P 500 is analyzing the market and gaining insights into which stocks rising or falling.  The key to these analyses is GICS – the Global Industry Classification Standard – which is used to define the sectors and industries in the index. GICS is jointly maintained by S&P Dow Jones Read more […]

Islamic Index Market Update: November 2014

November Highlights: Islamic Indices Continue to Outperform Conventional Benchmarks Globally U.S. Markets Power Higher While Europe, Asia-Pacific and Emerging Markets Weaken MENA Equity Markets Sell off Sharply in October & November, Trimming 2014 Gains Most major Shariah-compliant benchmarks continue to outperform their conventional counterparts in 2014 as Information Technology and Health Care – which tend Read more […]