Following the recent launch of the communication services sector, some exchange traded funds are getting refreshed looks to reflect the departures of some well-known technology stocks that moved out of that sector into communication services.
Among those ETFs are the iShares North American Tech-Software ETF (NYSEArca: IGV) and the iShares North American Tech ETF (IGM). The changes coming for those ETFs will take place on or around Dec. 24, 2018.
“These changes are designed to help IGM and IGV more closely maintain existing constituent exposure and mitigate turnover risk following the Global Industry Classification Standard (GICS) revisions to the Information Technology (IT) Sector,” said BlackRock in a statement out Monday. “The new indices seek to effectively track the methodology of the current underlying indices and retain constituents that have been reclassified to ineligible sub-industries due to the 2018 GICS Reclassification.”
Looking At The Changes
IGM will transition from its current index to the S&P North American Expanded Technology Sector Index and change its name to the iShares Expanded Tech Sector ETF.
“The iShares Expanded Tech Sector ETF seeks to track the investment results of an index composed of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sector,” according to BlackRock.
IGV will change its name to the iShares Expanded Tech-Software Sector ETF and swap benchmarks to the S&P North American Expanded Technology Software Index.
“The iShares Expanded Tech-Software Sector ETF seeks to track the investment results of an index composed of North American equities in the software industry and select North American equities from interactive home entertainment and interactive media and services industries,” said BlackRock.
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