INTRODUCTION
The Global Industry Classification Standard® (GICS®) assigns companies to a single classification at the sub-industry level according to their principal business activity using quantitative and qualitative factors, including revenues, earnings, and market perception. The sub-industry is the most specific level of the four-tiered, hierarchical industry classification system that includes 11 sectors, 24 industry groups, 69 industries, and 158 sub-industries.
The Health Care sector includes companies primarily engaged in:
- Manufacturing healthcare equipment and devices;
- Owning and operating healthcare facilities;
- Research, development, or production of pharmaceuticals;
- Research, development, manufacturing, or marketing of products based on genetic analysis and genetic engineering; or
- Enabling the drug discovery, development, and production continuum.
As outlined in Exhibit 1, the S&P Global 1200 Health Care comprises 2 industry groups, 6 industries, and 10 sub-industries, and it includes all companies in the S&P Global 1200 that are classified as members of the GICS Health Care sector.
Launched in September 1999, the S&P Global 1200 provides efficient exposure to the global equity market. The index is float-adjusted market-capitalization weighted and measures the performance of large-cap stocks from major markets around the world. Capturing about 70% of the global market capitalization, the S&P Global 1200 is constructed as a composite of seven country and regional headline indices, many of which are accepted leaders in their regions. These include the S&P 500® (U.S.), S&P Europe 350®, S&P TOPIX 150 (Japan), S&P/TSX 60 (Canada), S&P/ASX All Australian 50, S&P Asia 50, and S&P Latin America 40.
