GICS Sector Changes: Impact on Sector ETFs

Zacks2023-03-18

After the close on 17 March, S&P Dow Jones and MSCI will reclassify the Global Industry Classification Standard (GICS) structure. This will influence 14 S&P 500 companies. The current GICS structure ...

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This will influence 14 S&P 500 companies. The current GICS structure ...</p>\n\n<a href=\"https://finance.yahoo.com/news/gics-sector-changes-impact-sector-173205585.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4528","symbol_name":"SaaS概念","start_time":0,"source_url":"https://finance.yahoo.com/news/gics-sector-changes-impact-sector-173205585.html","article_id":"2320458115","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/jXMESY6HMxZdAHYgxesxtQ--~B/aD04NDU7dz05MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/b3c66d9d75634577c38a77879c3f0a96"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2320458115","pubTimestamp":1679074325,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"After the close on 17 March, S&P Dow Jones and MSCI will reclassify the Global Industry Classificati","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"161125":"标普500","BK4528":"SaaS概念","MA":"万事达","BK4106":"数据处理与外包服务","LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BOLT":"Bolt Biotherapeutics, Inc.","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","BK4191":"家用电器","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","LU0861579265.USD":"联博低波幅策略股票基金A","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","PYPL":"PayPal","BK4139":"生物科技","LU0444971666.USD":"天利全球科技基金","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU2089283258.USD":"安联环球可持续基金Cl AM Dis","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","OEF":"标普100指数ETF-iShares","BK4566":"资本集团","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","V":"Visa","SSO":"两倍做多标普500ETF","LU1815333072.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"AUP\" (USD) INC","BK4527":"明星科技股","IVV":"标普500指数ETF","TERN":"Terns Pharmaceuticals, Inc.","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","CRCT":"Cricut, Inc.","DLTR":"美元树公司","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU0079474960.USD":"联博美国增长基金A","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","BK4581":"高盛持仓","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","LU1803068979.SGD":"FTIF - Franklin Technology A (acc) SGD-H1","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU2265009873.SGD":"Eastspring Investments - Global Growth Equity AS SGD-H","XLI":"工业指数ETF-SPDR","TGT":"塔吉特","LU2089284900.SGD":"Allianz Global Sustainability Cl AM Dis H2-SGD","SPY":"标普500ETF","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","SG9999000418.SGD":"Aberdeen Standard Global Technology SGD"},"translate_title":"GICS行业变化：对行业ETF的影响","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"161125":0.6,"XLI":1,"TGT":1,"DLTR":1,"BOLT":0.9,"MA":0.9,"CRCT":0.9,"PYPL":0.9,"TERN":0.9,"V":0.9,"SPY":0.83,"OEF":0.6,"SSO":0.6,"IVV":0.6},"content_text":"After the close on 17 March, S&P Dow Jones and MSCI will reclassify the Global Industry Classification Standard (GICS) structure. This will influence 14 S&P 500 companies. The current GICS structure includes 11 sectors, which will remain unchanged.\nThe reclassification of firms will occur across five GICS sectors. These are consumer discretionary, consumer staples, financials, industrials, and information technology. The financials and information technology sectors will see the largest impact. UBS estimates financials weight in the S&P 500 will increase by 2.7% and information technology will decline by 3.2%.\nMoreover, food, household, and personal care products firms like Target TGT, Dollar General DG and Dollar Tree DLTR will leave the Consumer Discretionary Select Sector SPDR ETF XLY and join the Consumer Staples Select Sector SPDR ETF XLP The new discount stores companies will constitute about 6.5% of the new staples sector, per the UBS article.\nBelow we describe the likely impact of this reclassification on concerned sector ETFs.\nSector ETFs in Focus\nFinance & Information Technology\nFinancial Select Sector SPDR Fund XLF takes the spotlight.Eight S&P 500 stocks from the data processing & outsourced services subindustry will move to the newly created transaction and payment processing services subindustry in the financials sector.\nThe securities include Visa Inc., Mastercard Inc., PayPal Holdings Inc., Fiserv Inc., Fidelity National Information, Global Payments Inc., FleetCor Technologies Inc. and Jack Henry & Associates Inc. Each of the stocks will have larger weightings within their new sector. \nVisa V, Mastercard MA, and PayPal PYPL will form roughly 17% of the financials sector, larger than Berkshire Hathaway's weight (currently the largest component), per the article published on UBS.com. Digital payments have been in the front and center of consumer behavior lately.\nApart from showing an increased interest in online shopping, customers are resorting to digital payments to clear their bills. Even, merchants and utility providers are increasingly advocating the same. In the ongoing earnings reporting season, PayPal beat earnings estimate while Mastercard and Visa beat on both lines.\nHowever, the reclassification makes XLF a bit growth-centric. Visa, Mastercard, and PayPal, on average, trade at about a 90% premium to the financials sector on a consensus forward P/E basis. This is a negative for the sector if rates continue to rise.\nWith pure high-growth technology stocks gaining precedence in the fund, the fund will likely lose its relative value quotient. Rising rate environment will likely prove to be riskier for Technology Select Sector SPDR ETF (XLK).\nConsumer\nConsumer Staples Select Sector SPDR ETF (XLP) is another sector ETF that deserves definite mention. UBS estimates that the weight of the consumer discretionary sector in the S&P 500 will likely fall by 0.5% and consumer staples will likely gain by 0.5%. Dollar Tree and Target beat on both lines in latest earnings season while Dollar General offered mixed results. UBS indicated that valuation of those discount retailers was at par with consumer staples. Hence, the impact would be minimal. Consumer Discretionary Select Sector SPDR ETF XLY rather now became slightly richly-valued.\nIndustrials\nAutomatic Data Processing ADP, Broadridge Financial Solutions BR and Paychex Inc. PAYX come from industry and sectors that have upbeat Zacks ranks. These outsourcing stocks will join Industrial Select Sector SPDR ETF (XLI) with larger weights, post reclassification. The valuation of the sector ETF will go up slightly as ADP and PAYX trade at around 35% premium to XLI.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nMastercard Incorporated (MA) : Free Stock Analysis Report\nVisa Inc. (V) : Free Stock Analysis Report\nBroadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report\nPaychex, Inc. (PAYX) : Free Stock Analysis Report\nAutomatic Data Processing, Inc. (ADP) : Free Stock Analysis Report\nTarget Corporation (TGT) : Free Stock Analysis Report\nDollar General Corporation (DG) : Free Stock Analysis Report\nDollar Tree, Inc. (DLTR) : Free Stock Analysis Report\nFinancial Select Sector SPDR ETF (XLF): ETF Research Reports\nTechnology Select Sector SPDR ETF (XLK): ETF Research Reports\nConsumer Staples Select Sector SPDR ETF (XLP): ETF Research Reports\nIndustrial Select Sector SPDR ETF (XLI): ETF Research Reports\nPayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report\nConsumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2320458115"}