The Risk and Return Effect of a New S&P Sector

Rajeeb Poudel, Nina Rogers and Ravi Jain

Journal of Real Estate Portfolio Management, 2020, vol. 25, issue 2, 194-203

Abstract: Changes to the S&P 500 Index have been found to provide a wealth effect to the firms included or removed from the Index. On November 10, 2014, the S&P Dow Indices announced the addition of the first new GICS sector in the S&P 500 since technology stocks became a separate sector in 1999. Equity real estate investment trusts (eREITs) were separated from the financials sector, creating an 11th sector. We examine the return and risk effect of the creation of the new sector. We find a divergence in the risk of firms in the new sector and the non-S&P eREITs relative to the market. The eREITs in the S&P 500 Index maintained a lower risk, while the eREITs not in the Index increased in risk.

Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2020.1803703 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:repmxx:v:25:y:2020:i:2:p:194-203

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/repm20

DOI: 10.1080/10835547.2020.1803703

Access Statistics for this article

Journal of Real Estate Portfolio Management is currently edited by Peng Liu and Vivek Sah

More articles in Journal of Real Estate Portfolio Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().