Fund World Braces as Index Shakeup Hits $230 Billion of ETFs (1)

Fund managers will have to reallocate tens of billions of dollars this month as index providers make major changes to how they categorize companies within their global gauges.

Tweaks to the Global Industry Classification Standard — including a reclassification of some tech companies as financials — are set to hit US stock ETFs with estimated combined assets of $230 billion, according to JPMorgan Chase & Co.

All told, adjustments to the GICS structure could trigger $54 billion of rebalancing in exchange-traded funds managed by State Street Corp. and Vanguard Group Inc. alone, said Min Moon, head of index and ...