The changes don't take effect until September, 2018, but already Wall Street is trying to figure out what big names will will be moved around and which will affect those who own different slices of the S&P 500 through Exchange Traded Funds (ETFs) and many mutual funds.
Late on Wednesday, the S&P Dow Jones Indices and MSCI jointly announced an overhaul of the Global Industry Classification system, which is how the industry divides the stock market into different sectors. The Telecommunications Services Sector will broaden out to include more internet and media stocks in a beefed-up new sector called Communication Services.
Many argue the move to expand and rebrand was long overdue.
Traders have often complained that the telecom space is far too small to even be given its own sector. Almost two decades ago, the sector encompassed 14 companies. But after several waves of consolidation, that number has dwindled to just three names - AT&T, Verizon and CenturyLink.