Real Estate and Financial Services Select Sector Indices launched by S&P Dow Jones Indices

Indices Licensed to State Street Global Advisors for ETF Development…

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As Real Estate gains traction as a distinct category for investors, S&P Dow Jones Indices (S&P DJI) has announced the launch of the Real Estate Select Sector and Financial Services Select Sector indices. These two indices broaden S&P DJI’s well-regarded family of Select Sector Indices from nine to eleven.

Both indices have been licensed to State Street Global Advisors (SSgA) to serve as the basis for exchange traded funds (ETFs).

As previously announced on November 10, 2014, a new Global Industry Classification Standard (GICS®) Real Estate sector is being created, elevating real estate’s current position as an Industry Group under the Financials Sector. The change is scheduled to be implemented after the market close of August 31, 2016 and will bring the number of GICS® sectors to eleven.

“We are excited to announce the expansion of our widely followed Select Sector family,” says Philip Murphy, Vice President of North American Equity Indices at S&P Dow Jones Indices. “The launch of Real Estate and Financial Services Select Sector indices demonstrates our commitment to evolving this index family, acknowledging its growing importance amongst investors and within the markets overall.”

The constituents of the Select Sector Indices are all members of the S&P 500. Each constituent of the S&P 500 is assigned to at least one Select Sector Index which is based on the constituent’s classification under the GICS.

• Financial Services Select Sector is comprised of the GICS Financials Sector excluding the Real Estate Industry Group, but including Mortgage REITs

• Real Estate Select Sector includes the GICS Real Estate Industry Group excluding Mortgage REITs

Source: ETFWorld.com