S&P Dow Jones Indices and MSCI Inc. announced changes to the Global Industry Classification Standards (GICS) structure that are scheduled to go into effect in March 2023 and will involve reclassifying firms across five GICS sectors.
While these changes are not as significant as the 2016 and 2018 GICS changes that created new sectors, they will trigger industry-level changes beneath the surface, as industries are being both eliminated and created.
Watch a short discussion between Rebecca Chesworth, Senior Equity ETF Strategist, SPDR ETFs and Garrett Glawe, Head of U.S. Equity Indices, S&P Dow Jones Indices on what is changing for the S&P 500 sectors, why the changes are needed and what it means for investors.
GICS Changes Incoming: What it Means for S&P and MSCI Sectors
GICS changes on 17 March 2023 reflect shifts in business demands and consumer behaviour. The changes will have only a small impact on S&P and MSCI indices but will provide investors with more granular information about the underlying business operations of companies. The affected sectors include information technology, industrials, financials, consumer discretionary, consumer staples and real estate.