Last year, S&P Dow Jones Indices and MSCI announced changes to the Global Industry Classification Standard (GICS) and published the full list of companies that will be affected. These changes will go into effect after the close of trading on March 17, 2023.
The reclassification of firms will occur across five GICS sectors and will impact sector ETFs like the $44 billion Vanguard Information Technology ETF VGT and the $41 billion Technology Select Sector SPDR ETF XLK.
Visa V and MasterCard MA will leave the Information Technology sector as the Data Processing & Outsourced Services sub-industry is being discontinued. These firms will join the Financials Sector and ETFs like the Financial Select Sector SPDR ETF ETF XLF.
Retailers that generate most of their revenue or earnings from staple items like food, household, and personal care products will be moved from Consumer Discretionary to Consumer Staples Sector.
As a result, firms like Target TGT and Dollar General DG will leave the Consumer Discretionary Select Sector SPDR ETF XLY and join the Consumer Staples Select Sector SPDR ETF XLP.
To learn more, please watch the short video above.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Dollar General Corporation (DG) : Free Stock Analysis Report
Financial Select Sector SPDR ETF (XLF): ETF Research Reports
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Consumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
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