In a major reshuffle in S&P 500, Facebook, Twitter and Google will leave the tech sector to be reclassified under a new "communication services" sector. This puts them in the same sector as the trio of regulated telecoms AT&T, Verizon and CenturyLink. Disney, Netflix, and Comcast are also joining this newly created sector, among some more names.
I'm curious to know people's thoughts on this reshuffle - is it warranted? I can't seem to find a truly satisfying reason anywhere, except that the telecom sector housed only 3 companies earlier and murmurs of this being a precursor to future regulation of Facebook and Co. Neither of these reasons seem concrete enough.
Also curious if all the ETF rebalancing that is now occurring because of this - does it create any short term trading opportunities? Got no intention to trade on it but merely curious.
For those of you who work in equities/mutual funds/ETF's etc, any on the ground impact or other less obvious, less discussed implications of this reshuffle?