GICS vs. ICB Stock Classification: What’s the Difference?
GICS vs. ICB Stock Classification: An Overview
Understanding how sectors are defined is critical to diversifying a stock portfolio. That said, there are two competing systems for classifying stocks into sectors and industries: the Global Industry Classification Standard (GICS) and the Industrial Classification Benchmark (ICB).
Both were designed to provide an accurate and standardized industry definition for use by the global investment community. The differences are minor and, in any case, the investor often doesn’t make the choice. All of the major indexes have adopted one or the other as their standard.
Both of these classification systems are intended to provide an industry and sector framework that enables accurate…
