Google and Facebook Moving From S&P's Tech Sector: What That Means for Investors
In her article for The Wall Street Journal, Danielle Chemtob explains how upcoming changes to the S&P 500's structure will affect the representation of technology companies in the index.
"Facebook Inc. and Google parent Alphabet Inc. are expected to say goodbye in September to the highflying tech sector of the S&P 500. They will join a new communications-services group that will also house media giants such as Netflix Inc. and Comcast Corp. that now reside in the consumer discretionary group," she says.
This will also mean major changes to the funds that currently track the S&P 500, and it's varies sectors. "Changes by index providers mean that funds tracking the current telecom, tech and consumer-discretionary sectors will be forced to trade billions of dollars of shares to realign their holdings."
Full article on The Wall Street Journal - HERE