2023 GICS Structure Changes

After market close on March 17, S&P Dow Jones Indices and MSCI Inc. will implement changes to the GICS structure that will involve reclassifying firms across five of the GICS sectors. To learn more about these changes, read our blog, “2023 GICS Changes: Companies Impacted and What You Need to Know.”

And for a deeper dive into the changes and the SPDR Sector and Industry ETFs that will be affected, read our GICS Structure Changes FAQs.

Investment Capabilities

Invest with Sector ETFs

Sector ETFs are a powerful tool for investors, offering a straightforward way to incorporate simple or sophisticated sector strategies with precision and transparency. And with $685B in AUM,¹ it’s clear that equity sector ETFs are more than just a trend.

Powerful Portfolio Construction Tools

Sectors divide the economy into groups of companies that operate similar businesses or provide related products and services. Creating these segments enables in-depth analysis of market dynamics to see which parts of the economy are flourishing — or lagging — in order to find pockets of potential out performance.

Sector investments provide targeted exposure to these economic segments, giving you a wide variety of options to enhance the core of your equity portfolio and adapt to changing market cycles with agility and precision.

How Can Sectors Enhance Your Core?

Quick Links

Customize Portfolios with Sector Strategies

Using sector-based investment strategies can help you align and adjust your portfolios based on macroeconomic or thematic trends, like clean energy and declining interest rates, changing stock fundamentals, or shifts in technical indicators, like momentum.

Sector strategies can help you:

Pursue alpha: capitalize on a wide dispersion of returns by overweighting winners and underweighting losers
Position for business cycles: align your portfolio with shifts in business cycles by either increasing or reducing allocations to specific sectors based on the current economic phase
Capture secular or cyclical industry trends: sectors are closely aligned with specific economic variables (oil, inflation, rates), and can help investors capture secular or cyclical industry trends
Harness diversification benefits: seek targeted exposure to a theme or trend without taking on stock-specific risks

Read more about each of these investment cases in Four Reasons to Implement a Sector Strategy.

Assess Sector and Industry Performance and Flows

Ready to evaluate a sector or industry allocation? Use these resources to guide your decision making.

GICS Sector & Industry Map

Explore the GICS sectors and their underlying industries, along with daily performance of SPDR sector and industry ETFs

Take a closer Look

Sector Scorecard

Compare sectors based on valuation, sentiment, volatility, and more.

Download

Sector & Industry Dashboard

Consider three trends for the coming quarter—are you positioned for them?

Learn more

Spotting Sector and Industry Trends

Consider three trends for the coming quarter—are you positioned for them?

How to Construct a Sector Portfolio

When you’re ready to implement a sector strategy, you can consider carving out a portion of your US equity exposure for sectors. Then, choose your sectors based on these types of analysis:

Top-Down

Analyze business cycles to rotate towards sectors that could potentially benefit more from the current economic phase.

Thematic

Survey macroeconomic data (oil, inflation, rates) to position according to changes in certain macroeconomic variables. Identify cyclical or secular industry trends to harness the growth potential within a particular segment of the economy.

Bottom-Up

Use aggregated company-level data to identify sectors with attractive fundamental characteristics, such as cheaper valuations and/or stronger earnings sentiment.

Technical

Evaluate recent performance to overweight/underweight sectors with strong price momentum.

Choose ETFs for Your Sector Allocation

Investing in sector ETFs can be an efficient way to implement sophisticated strategies with precision and transparency.

ETFs can offer:

Exposure to an entire sector or industry in one trade;
Cost-effective, liquid market access; and
Transparency, so you’ll always know the full makeup of your exposure.

Select Sector SPDR® ETFs

As the largest US sector ETF suite, Select Sector SPDR funds have historically traded with greater volume and tighter bid/ask spreads compared to other sector ETF families, which may lead to lower total cost of ownership.²

See all Select Sector ETFs

SPDR Industry ETFs

With a modified equal-weighted methodology, SPDR Industry funds offer broader industry coverage with a mid- and small-cap tilt and less concentration risk than market cap weighted exposures.

See all Industry ETFs

Full Service

Let our Investment Solutions Group (ISG) do the work. The SPDR® SSGA US Sector Rotation ETF (XLSR), combines tactical overweights and underweights of S&P 500 sector ETFs based on ISG’s sector return forecasts and research, which includes a proprietary, quantitative sector selection model.

Partner with a Leader in Sector Investing

State Street Global Advisors launched the world’s first suite of sector ETFs in 1998, and continues to expand on that heritage to help investors precisely meet their desired sector exposures.

#1

World’s largest sector ETF provider ³

11x greater

Average trading volume than the next-largest competitor ⁴

20+ Yrs.

Managing sector ETFs

What’s Next?

Explore Cutting-Edge Innovation

Technological advances in clean energy, intelligent infrastructure, cybersecurity, autonomous vehicles and space exploration are transforming industries and creating new ones. Pursue the exponential growth of the disruptive and innovative firms reshaping our society.

Capitalize on the opportunity

Footnotes

Glossary

Disclosures

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.
All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

Returns on investments in stocks of large US companies could trail the returns on investments in stocks of smaller and mid-sized companies.

Because of their narrow focus, sector investing tends to be more volatile than investments that diversify across many sectors and companies.

Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.

Diversification does not ensure a profit or guarantee against loss.

There can be no assurance that a liquid market will be maintained for ETF shares.

Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions.

Actively managed ETFs do not seek to replicate the performance of a specified index. Because the SPDR SSGA Active Asset Allocation ETFs are actively managed, they are therefore subject to the risk that the investments selected by SSGA may cause the ETFs to underperform relative to their benchmarks or other funds with similar investment objectives.

Concentrated investments in a particular sector or industry tend to be more volatile than the overall market and increases risk that events negatively affecting such sectors or industries could reduce returns, potentially causing the value of the Fund’s shares to decrease.

Passively managed funds invest by sampling the Index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the Index.

Select Sector SPDR Funds bear a higher level of risk than more broadly diversified funds. All ETFs are subject to risk, including the possible loss of principal. Sector ETFs products are also subject to sector risk and nondiversification risk, which generally results in greater price fluctuations than the overall market.

Investing involves risk including the risk of loss of principal.

Non-diversified funds that focus on a relatively small number of securities tend to be more volatile than diversified funds and the market as a whole.

Investments in small/mid-sized companies may involve greater risks than in those of larger, better known companies.