Investors In FANG Stocks, Index Funds And ETFs Should Watch This Change
Summary
Investors in FANG stocks, index funds and ETFs should pay attention to sector reclassifications this week, as big changes involve Facebook ( FB ), Alphabet s ( GOOGL ) Google and Netflix ( NFLX ), as well as two telecom giants and some media and internet companies."Given the large weight of Google and Facebook, which have more idiosyncratic growth and return profiles, the sectors sensitivities to macro variables will become less extreme and should no longer be considered a bond proxy.In June, State Street Global Advisors developed a new ETF, Fritzsche said in her note to clients."As of July 25, XLC (the new ETF) was composed of 26 stocks and weighted average market cap of $410 billion.Diversified Telecommunication Services accounts for 10% of the weighted XLC portfolio, with Verizon, AT&T and CenturyLink ( CTL ) being the only pure telecom holdings," Fritzsche said.