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Computers can build a better ETF — but will investors bite?

The biggest overhaul of market indexes in years is a good moment to look at whether current industry classifications make sense

The way companies are classified is going through one of the largest changes in its history, as stocks from tech, consumer discretionary and telecommunications are gathered together to form a new Communication Services sector. While investors busy themselves adjusting to the changes made to the Global Industry Classification System, or GICS, we ask ourselves: Isn’t there a better way?

We aren’t the only ones asking that question, and some claim to have found better ways. The only problem: They might be too complicated for investors to embrace just yet.

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