S&P 500 - Sector Change


Recently the GICS (Global Industry Classification Standards) Index Manufacturers, together with S&P Dow Jones Indexes, announced that they were re-aligning the Sectors of the S&P 500. The major changes include:

  • Renaming Telecommunications to Communications.
  • Repositioning 18 media and entertainment companies from Consumer Discretionary and adding them to Communications, including Netflix, CBS and Walt Disney.
  • Repositioning 5 entertainment and software services companies from Technology and adding them to Communications including Google and Facebook.
  • Repositioning EBAY from Technology and adding it to Consumer Discretionary.

In Summary, these changes will result in a 6% reduction in the size of the Technology Sector and a 3% reduction in the size of the Consumer Discretionary Sector. The updated Communications Sector will comprise about 10% of the S&P 500. The final Index changes are expected to be announced on July 1st and the official rebalance of the Index Sectors is expected to take place on September 24th.

The Cavalier Tactical Rotation Fund now incorporates the Communications Sector.  The Fund utilizes all 11 S&P 500 Sectors in the Tactical Rotation methodology.