To keep up with the new GICS changes that will transform the telecommunications services sector, State Street Global Advisors launched a new telecom ETF on Tuesday.

The Communication Services Select Sector SPDR Fund (NYSEArca: XLC), which has a 0.13% expense ratio, includes select companies from the information technology and consumer discretionary sectors.

“State Street Global Advisors always seeks to provide investors with the tools necessary to implement sector views across the entire GICS framework,” Noel Archard, global head of product for State Street ETFs, said in a note. “The launch of XLC allows our clients immediate access to this new investment opportunity that will represent roughly 10 percent of the S&P 500 Index in terms of market capitalisation.”

The Communication Services Select Sector SPDR Fund will try to reflect the performance of the, Communication Services Select Sector Index, which includes companies that have been identified as Communication Services companies by the Global Industry Classification Standard, according to the fund’s prospectus.

Specifically, XLC will include securities of companies from diversified telecommunication services; wireless telecommunication services; media; entertainment; and interactive media & services.

GICS Structure Reclassification

Under the new reclassification of the GICS structure, the new sector will be renamed Communication Services effective September 21, 2018 and will include select tech and consumer discretionary names.

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