BlackRock has announced changes, brought about by the recent GICS makeover, to two of its US-listed ETFs that provide exposure to North American technology stocks.

BlackRock has announced changes to two North American tech ETFs as a result of the recent GICS revamp.

The funds will adopt new underlying indices, with partially revised investment objectives, and have their names updated to reflect the changes.

The ETFs in question are the $1.4 billion iShares North American Tech ETF (IGM US), listed on the NYSE Arca, and the $1.7bn iShares North American Tech-Software ETF (IGV US), listed on Cboe.

They currently track indices provided by S&P Dow Jones Indices which provide exposure to the technology and software sectors respectively.

The changes are designed to allow the funds to continue maintaining their existing constituent exposure in the light of revisions to the technology sector as set out in the Global Industry Classification Standard.

Following their latest annual review of the GICS, S&P Dow Jones Indices and MSCI announced the creation of a new ‘Communications Sector’ of the S&P 500, borne out of a transformation of the telecommunications services sector with the addition of select firms from information technology and consumer discretionary sectors.

The funds’ new indices will allow the ETFs to continue holding certain equities they otherwise would have been forced to sell due to the stocks being reclassified away from the technology sector.

IGM will cease to track the S&P North American Technology Index in favour of the S&P North American Expanded Technology Sector Index. Its name will change to the iShares Expanded Tech Sector ETF.

IGV will cease to track the S&P North American Technology Software Index in favour of the S&P North American Expanded Technology Software Index. Its name will change to the iShares Expanded Tech-Software Sector ETF.

The new indices have technically broader investment objectives than their predecessors as IGM’s new index will also include consumer services and consumer discretionary stocks, while IGV’s new index includes equities from interactive home entertainment and interactive media and services industries.

Each ETF will retain its current ticker code as well and its expense ratio; both funds charge fees of 0.47%.

The changes are due to take effect as of 24 December 2018. Shareholders are not required to take any actions.