Index providers Standard & Poor’s and MSCI previously announced the creation of the communication services sector, an expanded, refreshed look at the old telecommunications sector. On Thursday, S&P Dow Jones Indices said the Communication Services Select Sector Index is up and running.

As the communication services sector comes to life, big changes are coming for some well-known consumer discretionary and technology exchange traded funds, including the Consumer Discretionary Select Sector SPDR (NYSEArca: XLY) and the Technology Select Sector SPDR (NYSEArca: XLK). XLK, the largest technology ETF.

“Now that the Communication Services Select Sector Index is launched, here is what it looks like on the inside with return results based on ten years of backtested history.  The index has 26 constituents with a total market cap of $2.35 trillion, average market cap of $92.5 billion and median market cap of $34.9 billion as of May 16, 2018,” according to S&P Dow Jones Indices.

Communication Services Select Sector Index

The Communication Services Select Sector Index provides new definitions for integrated telecom services and wireless services providers as well as adding several sub-industries previously classified under the consumer discretionary sector.

For example, the new index adds media, entertainment, home entertainment and interactive media and services companies from the discretionary sector.

“There are 6 constituents from Information Technology with a total market cap of $1.24 trillion, 17 constituents from Consumer Discretionary with a total market cap of $856.6 billion and 3 constituents from Telecommunication Services with a total market cap of $254.2 billion,” said S&P.

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