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FANGs Aren’t Tech Stocks Any More: S&P Overhauls Sector Breakdowns

In the largest sector reclassification since 1999, Facebook, Alphabet, Twitter, Paypal, Netflix, Disney, Viacom, Fox, and Snap will now be classified as “Communications Services” instead of “Information Technology,” in a move that will reduce the “tech” portion of the S&P from around 26% to 15%. This reclassification will have significant impact on the portfolios of millions of investors, as the makeup of Exchange Traded Funds will change. Specifically, the makeup of the $23 billion SPDR Fund will change drastically in a single day. 

Source: FANGs Aren’t Tech Stocks Any More: S&P Overhauls Sector Breakdowns – TheStreet

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