Tag Archives: GICS

What’s Your U.S. View?

Every year, certain trends take centre stage and help to explain market returns. For example, expectations over trade negotiations and Fed policy were useful for explaining market performance in 2019.  Many of these developments often appear obvious with the benefit of hindsight, but identifying the trends and their subsequent impact in advance is far from Read more […]

S&P Composite 1500®: Measuring Market Trends

The S&P Composite 1500 measures the U.S. equity market by combining three world-renowned benchmarks – the S&P 500®, S&P MidCap 400®, and S&P SmallCap 600® – which together encompass approximately 90% of U.S. equity market capitalization.  With 2019 in the rear-view mirror, it is obvious that last year was extremely positive for U.S. equities:  the Read more […]

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, Read more […]

Gearing up for auto tariffs? Revenue exposure might be useful

May was categorized by the return of macro fears.  Many equities indices and fixed income indicators flashed red – and the S&P 500’s four month win streak ended – as investors grappled with trade tensions and the potential impact on global growth.  Adding to investors’ uncertainty, President Trump’s surprise month-end announcement of tariffs on Mexican Read more […]

When to Get Active with Sectors

When do sectors matter, and what can you do about it?  Sometimes the sector composition of an equity portfolio strongly affects its returns.  At other times, single stock effects or overall market effects dominate. Sector-based products such as ETFs and futures have been around for decades, but recently they have attracted growing interest.  Exhibit 1 Read more […]

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 Read more […]

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 […]