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Tag Archives: communication services

Jan 27, 2023

GICS Changes Are Approaching

After the close on March 17, 2023, changes to the Global Industry Classification Standard (GICS®) structure will go into effect in GICS Direct and in S&P DJI’s indices. These changes will affect most sectors and will change what it means to be sector neutral. For example, Exhibit 1 compares the S&P 500 sector weights at…

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Jan 26, 2023

The S&P China 500 Rebounded 7.1% in Q4 2022, Recovering a Portion of Its 2022 Losses

The S&P China 500 gained 7.1% in Q4 2022, gaining back some of the losses exhibited earlier in 2022. Despite the strong quarter, Chinese equities underperformed global and emerging markets in Q4, as these segments broadly bounced back from the heavy losses of Q3. The S&P China 500 declined 24.4% in 2022, likewise underperforming global…

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Nov 10, 2022

Examining Equal Weight

In this tumultuous market characterized by Fed rate hikes, elevated inflation and a strong dollar, mega-cap growth companies have suffered heavy losses, paced by recent “Big Tech” earnings disappointments from Meta, Microsoft, Alphabet, Amazon and others. The S&P 500® Top 50 declined by 19% over the past 12 months, underperforming the S&P 500 by 5%….

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Nov 9, 2022

Watch Your Weighting Scheme

2022 has witnessed a recalibration across financial markets, as investors have digested the impact of higher interest rates amid elevated inflation. Despite bouts of optimism that the U.S. Federal Reserve would take a more dovish stance, and better-than-expected corporate earnings, Exhibit 1 shows that the vast majority of large-, mid- and small-cap indices declined through…

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Oct 17, 2022

The S&P China 500 Dropped 20.3% in Q3 2022 as China Equities Caught Up with The Global Sell-Off

The S&P China 500 saw its largest quarterly drawdown in seven years, declining 20.3% in Q3 2022. While Chinese equities outperformed their global and emerging market counterparts in Q2, they significantly underperformed in Q3 and have now caught up with 2022’s global market downturn, with the S&P China 500 now in the red 29.4% YTD….

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Jun 17, 2020

Why The S&P 500® Matters in India

We recently held a webinar examining the relevance of the S&P 500 to India-based investors, the potential diversification benefits of incorporating U.S equity exposure to an existing allocation, as well as showing how difficult active managers have found it to beat the index, historically.  You can watch a replay of the webinar here; here are…

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Sep 24, 2019

Happy Birthday to the Communication Services Sector

The Communication Services sector turns one year old on Sept. 24, 2019. A year ago, the Global Industry Classification Standard® (GICS®) replaced the old Telecommunication Services sector with a new Communication Services sector, which combined telecom with some companies that had formerly been classified in the Information Technology and Consumer Discretionary sectors. As a result,…

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Jan 24, 2019

Communication Services Is Getting Louder

Since the sector shakeup on Sep. 24, 2018,  the S&P 500 fell 19.5% through the close of Dec. 24, 2018 then rebounded 12.2% by the close of  Jan. 23, 2019 for a loss of 9.6% in the full period.  The annualized volatility of 22.8% in the past 82 days has been the highest since the 82…

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Dec 4, 2018

Let’s talk about Communication

One of the largest ever changes to the Global Industry Classification Standard (GICS®) went into effect prior to the open on Monday 24th September, affecting around 10% of the S&P 500’s market capitalization.  In case you missed our previous announcements, here is a brief explanation of GICS, what changed, and why these changes went into…

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Sep 19, 2018

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…

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