Significant changes will happen to sector classification this month. As a result of impending GICS changes, approximately 10% (by weight) of the S&P 500 index will be affected and the composition of three sectors will change. A new sector, Communication Services, reflects the evolution of how we communicate and access entertainment content.
Well-known companies Facebook, Alphabet (parent company for Google) and Netflix are being reclassified and moved into the new sector. How can investors position themselves in light of this re-shuffle? In this month’s Sector Dashboard, we provide the investment case for the new sector, in addition to other sectors where we see opportunities.
