Last year, index providers MSCI and Standard & Poor’s announced the telecommunications sectors would be renamed communications services and would add companies from the consumer discretionary and technology sectors.
The communication services sector officially debuts later this month, potentially putting the Communication Services Select Sector SPDR Fund (NYSEArca:XLC) in the spotlight.
XLC is the first ETF dedicated to the new communication services sector. The new ETF tracks the Communication Services Select Sector Index and “seeks to provide precise exposure to companies from the media, retailing, and software & services industries in the U.S.,” according to State Street Global Advisors (SsgA).
XLC, which debuted in June, has $523.76 million in assets under management, making it one of the most successful ETFs to debut this year. XLC is home to some of the big-name stocks that, until the reconfiguration of communication services, previously resided in the consumer discretionary and technology sectors.