Index Insights: Stories from the March S&P rebalance

Samara Cohen Mar 17, 2023 Equity

In this edition of Index Insights, we explore what we expect to happen during the March 2023 S&P Dow Jones Indices Quarterly Index rebalance, including:

  • A major GICS® makeover. Based on the results of an October 2021 consultation, Global Industry Classification Standard (GICS®) changes will be implemented for S&P Dow Jones Indices after market close on March 17.1
  • One notable expected change is a shake-up of the Data Processing & Outsourced Services Sub-Industry, which is expected to result in 11 names in the S&P 500® Index  moving from the Information Technology sector into the Financials and Industrial sectors.2

Index providers, like S&P Dow Jones or FTSE Russell, are responsible for constructing and monitoring a wide variety of indexes.

During periodic reviews (or rebalances), index providers may make changes to their indexes. For example, a provider will remove securities that no longer meet the criteria for index inclusion as outlined in its methodology. 

Unlike individual securities, indexes aren’t directly investable. Instead, investors use index funds, including index ETFs, which seek to track the performance of designated indexes, less fees. Given the rise of investor adoption of index funds, large amounts of assets now seek to track these indexes.3

That’s why it’s important for investors to monitor index rebalances. Updates to index holdings, like additions to, deletions from and weight changes within an index, may have a corresponding impact on iShares ETFs.4

For more information on these changes and their potential impact on the funds listed below, see the full report.

Samara Cohen

Samara Cohen

Managing Director, is the Chief Investment Officer of ETF and Index investments (EII) at BlackRock

Daniel Prince

Daniel Prince, CFA

U.S. Head of iShares product consulting and U.S. Head of iShares Core and Stylebox ETFs

Samantha Merwin, CFA


Alec Woodworth, CFA


Brian Goodwine, CFA