Source article: https://www.theglobeandmail.com/globe-investor/investment-ideas/getting-a-read-on-index-changes/article38279262/
In short, GICS is reclassifying components currently within the tech sector starting Sep 28, 2018. Many former tech companies (e.g. Alphabet, Facebook) and consumer discretionary (e.g. Disney, Netflix) will then become part of the communication services sector.
I know at this point, this is old news, but some takeaways from the article represent some good points to note:
- Your back-tests are rendered useless
- The reason you purchased a fund or ETF may no longer be relevant
- What you have assumed about an industry may now change
- Your industry allocations will likely need to change
Changes of note:
| Company Name | Current GICS Sector | New GICS Sector |
|---|---|---|
| Comcast Corp. | Consumer Discretionary | Communication Services |
| Time Warner Inc. | Consumer Discretionary | Communication Services |
| Twenty-First Century Fox Inc. | Consumer Discretionary | Communication Services |
| Viacom Inc. | Consumer Discretionary | Communication Services |
| Walt Disney Co. | Consumer Discretionary | Communication Services |
| NetFlix Inc. | Consumer Discretionary | Communication Services |
| TripAdvisor Inc. | Consumer Discretionary | Communication Services |
| Alibaba Group Holding Ltd. ADR | Information Technology | Consumer Discretionary |
| Baozun Inc. ADR | Information Technology | Consumer Discretionary |
| eBay Inc. | Information Technology | Consumer Discretionary |
| Alphabet Inc. | Information Technology | Communication Services |
| Baidu.com ADR | Information Technology | Communication Services |
| Facebook Inc. | Information Technology | Communication Services |
| Twitter Inc. | Information Technology | Communication Services |
| Yelp Inc. | Information Technology | Communication Services |
| Snap Inc. | Information Technology | Communication Services |
Submitted March 22, 2018 at 08:39AM by Fearspect http://ift.tt/2GRiyO6
