The Global Industry Classification Standard (GICS) is an industry taxonomy created by Standard & Poor’s and MSCI for classifying publicly traded companies into 11 sectors, 24 industry groups, 69 industries, and 158 sub-industries, based on their business activities. GICS is the most widely accepted and closely followed market classification system worldwide and has become the industry standard for the classification of publicly traded companies.

GICS provides a structure for comparing and analyzing the performance of securities across industries and sectors and helps investors and analysts identify, compare, and contrast a firm's competitors. GICS also helps investors recognize emerging global trends and assess risk and potential reward opportunities across different sectors.

The GICS classification system begins with its 11 global sectors, namely Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Information Technology, Materials, Real Estate, Telecommunication Services, and Utilities. Under these eleven sectors, GICS further breaks down into 24 industry groups, 69 industries, and 158 sub-industries. For example, the Information Technology sector is composed of the four industry groups: Software & Services, Technology Hardware, Equipment & Distribution, and Semiconductors & Semiconductor Equipment. Within each of these four industry groups are 17 industries and 70 sub-industries.

In order to ensure that the GICS classification system keeps up-to-date with the changing global economic landscape, Standard & Poor’s and MSCI review the GICS structure on an annual basis and may make light or major updates of the sector and industry categories, as well as changes to the composition and classification of individual companies.

GICS provides a standard format for the analysis and comparison of stocks, making it the backbone of the global equity markets. Investors rely on the GICS classification system to classify stocks and create global, industry, and sector-focused portfolios. GICS also helps investors conduct research on a sector or an industry, identify global trends, assess risk and potential reward opportunities, and construct custom benchmarks and indexes.

The Global Industry Classification Standard (GICS) provides the standardized structure for making sense of the global equity markets and offers investors the ability to create portfolios that align with their investing goals. With the guidance of GICS, investors can accurately compare and contrast firms to find the best fit while helping identify global trends and assess potential risks and returns.