Companies that are now excluded form the index are Exxon Mobile Corp., Microsoft, Goldman Sachs, and Berkshire Hathaway Inc.
The rebalance reflects several macroeconomic factors, Michael notes. Overall the Index has shown a shift toward companies with a lower market capitalization and a move away from financial and information technology companies towards materials and industrials stocks.
Allocation to materials increased from just 6% to 13%, consumer staples up from only 2% to 7%, and industrials from 16% to 21%. Energy’s 25% allocation in the index is the maximum that any sector is allowed to have.
SIH is down 13.9% year-to-date.