Our custodial partner Charles Schwab recently announced a significant expansion of the ETF’s available to trade with no commission on their market-leading “ETF OneSource” platform. Beginning March 1, 2019, leading ETF’s from iShares, Invesco, State Street Global Advisors SPDR, Wisdom Tree and others will be added, bringing the total number of commission free ETF’s to 503, covering 79 Morningstar categories. We applaud Schwab for making ETFs more affordable and accessible for all investors.
Major changes to the Information Technology and Telecommunications stock market sectors announced last year by index providers S&P/Dow Jones and MSCI are set to take effect on September 29, 2018. The Telecommunications Services sector will be replaced by the Communications Services sector, which moves from 2% of the “old” S&P 500 to almost 11%. The new sector will include growth stock stalwarts like Alphabet (Google) and Facebook (formerly “Tech” stocks), as well as former Consumer Discretionary heavyweights like Disney and Netflix, which also move to the new sector. Hundreds of billions of dollars of ETF’s that track these stocks are in the process of being re-constituted to reflect these changes. These changes will have a significant impact on how investors measure and target/source returns, especially growth stock investors.