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GFD Blog

GFD Sector and Industry Classification System Revised

Global Financial Data has revised its sector and industry classification system and has added comparison with the GICS and SIC classification system to help users understand the differences between the three systems.

The GICS (Global Industry Classification System) is provided by MSCI/S&P Global and divides the investing world into 11 Sectors, 24 Industry Groups, 68 Industries and 157 Sub-Industries.  The system was established in 1999 to replace the sector groupings that MSCI and S&P had developed over time.  The system is revised every couple years and recently ...

Taylor’s Golden Rule of Stock Market Size Indices

Global Financial Data has collected extensive data on stocks from the United States and the United Kingdom covering over 400 years.  With this, GFD plans to generate indices that cover the history of the stock market from the incorporation of the Dutch East India Company in 1602 to the current market in 2018.  GFD will provide a general index, sector indices and size indices.

One question which the creation of size indices creates is how many components should be in the large cap, midcap and small cap indices.  Where should large cap, midcap and small cap begin and ...

The S&P Composite Before 1957

When Standard and Poor’s introduced the S&P 500 index in March 1957, it revolutionized the index world and created a benchmark for the stock market that is still used today. The original S&P 500 index included 425 industrial stocks, 15 rail stocks and 60 utility stocks.  The S&P 500 maintained this composition until July 1976 when finance stocks were added to the index.  The index included 400 industrials, 40 utilities, 40 finance and 20 transport stocks in 1976. Allocation by sector was abandoned on April 6, 1988 and today S&P uses their GICS sectors with no ...