Three FANG stocks and two telecom giants are now in the same industry sector, a big change relevant for investors in index funds and ETFs.
Dividend-paying AT&T ( T ) and Verizon Communications ( VZ ), along with high-growth internet stocks Netflix ( NFLX ), Facebook ( FB ) and Alphabet 's ( GOOGL ) Google, now belong to the renamed Communications Services sector, S&P Dow Jones Indices and MSCI announced late Thursday.
Amazon.com (AMZN), also part of the closely-watched tech FANG stocks with Facebook, Netflix and Google, was not added to the Communications Services sector.
Previously called the Telecommunication Services sector, the group has included only phone companies such as AT&T, Verizon and CenturyLink (CTL). Aside from the internet companies, the new Communications Services sector also includes cable TV firm Comcast (CMCSA), Dish Network (DISH), Walt Disney (DIS), Twitter ( TWTR ), and Snap (SNAP).
S&P Dow Jones Indices and MSCI said in November 2017 that they were planning changes to the Global Industry Classification Standard categories. The changes take effect on Sept. 28. S&P Dow Jones Indices and MSCI say the changes reflect blurring lines between media, internet and telecom companies.
AT&T is seeking approval to acquire Time Warner (TWX).
Comcast, Netflix, Disney and Dish are now part of the Consumer Discretionary sector, while Alphabet, Facebook and Snap are currently in the Information Technology sector.
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