- S&P 500 will reclassify the sectors of some significant shares in 2023.
- Payment processing companies currently classified as tech firms would join the financial industry.
- Other tech names providing outsourcing or human resources support would come under industrial stocks.
- The dominance of tech stocks in the S&P 500 would likely shrink following the changes, Bloomberg reports.
- The tech sector represented 28% of the S&P 500, more than the weighting of the healthcare and consumer-discretionary sectors' weighting.
- Now Visa Inc V, PayPal Holdings Inc PYPL, and Mastercard Inc MA would shift from tech to the financial sector marking a significant impact on the sector ETFs that have hefty exposure to these companies an expert suggested.
- Photo by sergeitokmakov via Pixabay
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