ETFs

Computers can build a better ETF — but will investors bite?

The biggest overhaul of market indexes in years is a good moment to look at whether current industry classifications make sense

Friday 21 September 2018 at 20:01

The way companies are classified is going through one of the largest changes in its history, as stocks from tech, consumer discretionary and telecommunications are gathered together to form a new Communication Services sector. While investors busy themselves adjusting to the changes made to the Global Industry Classification System, or GICS, we ask ourselves: Isn’t there a better way?

We aren’t the only ones asking that question, and some claim to have found better ways. The only problem: They might be too complicated for investors to embrace just yet.