What will be the impact of significant tech reclassifications for investors?

S&P to launch Communication Services sector

The reclassification of some of the S&P's largest technology stocks, shifting companies like Facebook, Netflix and Google's Alphabet to the newly created communication services group, could lead to up to $100bn of turnover between the sectors, as quant and ETF products are forced to rebalance.

Meanwhile, providers are also taking advantage of the changes with a spate of new product launches. Last week, index providers MSCI and S&P made their first significant changes to sector definitions since 1999, scrapping the existing telecoms sector, which had dipped to under 2% of the S&P 500, making way for the communication services grouping, which will house 26 companies. Effective from 24 September, the sector has been established for companies providing platforms for communication, and those that operate various kinds of media. It also includes consumer discretionary sector c...