In November 2017, S&P Dow Jones Indices announced changes to the Global Industry Classification Standard (GICS) structure. These changes will be effective for the Indexes after the close of business on September 21, 2018 (the “Rebalance Date”).
In particular, the current Telecommunication Services Sector will be broadened and renamed the Communication Services Sector. The Communication Services Sector will include the existing companies classified as Telecommunication Services, as well as certain companies currently classified as either Consumer Discretionary or Information Technology.
As a result of these changes, on the Rebalance Date:
1. The S&P 500® Index will be rebalanced.
Key changes to The S&P 500® Index:
- Communications Services (formally Telecommunications), will increase from roughly 2% to 10% of the Index.
- Consumer Discretionary will be reduced from approximately 13% to 10% of the Index.
2. The Technology Select Sector Index, will be reconstituted by eliminating the stocks in the index that are being reclassified as Communication Services Stocks.
Key changes to the Technology Select Sector Index:
- Apple will remain in the Index
- Facebook and Google will be removed from the Index and included in the Communication Services Sector Index