S&P 500 Sector Change (XLRE) and Impacts on the Defined Risk Strategy 

Sector Change — Impacts for the Swan Defined Risk Strategy


Real estate became its own equi­ty sec­tor with­in the GICS clas­si­fi­ca­tion of the S&P 500 as of the mar­ket close on August 31st, 2016. It was pro­mot­ed from its cur­rent posi­tion as an indus­try group with­in the finan­cials sec­tor. This will be the first new sec­tor estab­lished since the GICS clas­si­fi­ca­tions were cre­at­ed in 1999.

This sec­tor change only impacts Swan’s invest­ment products/funds that uti­lize the SPDR Select Sec­tors.

What will this mean for our equal-weight sec­tor approach with­in our S&P 500 DRS

Why are we not just adopt­ing real estate as anoth­er sec­tor and mak­ing each sec­tor equal­ly weight­ed at 10% each? 

Read the full notice below:

Down­load the Sec­tor Change Notice