GICS Codes Explained: Structure, Sectors, and How the Hierarchy Works (MSCI & S&P)
What are GICS codes? The Global Industry Classification Standard (GICS) is a global taxonomy for classifying public companies by their primary business activity. Developed by MSCI and S&P Dow Jones Indices, it provides a consistent “industry language” for investment research, sector benchmarking, index construction, and performance attribution.
Why GICS Exists
Investment teams need a standard way to group public companies for apples-to-apples comparison, risk analysis, and benchmarking. Without a shared taxonomy, the same company may be categorized differently across platforms—creating inconsistencies in sector exposure, performance attribution, and peer comparisons.
Key idea: GICS balances global consistency (comparability across markets) with granularity (drilling down from sector to sub-industry) so investors can analyze exposures at the level that matches their decision-making.
GICS Hierarchy and Code Format
GICS is a four-level hierarchy: Sector → Industry Group → Industry → Sub-Industry. A company can be represented with an 8-digit code where each pair of digits adds specificity. This structure supports everything from high-level sector allocation to precise peer-set analysis.
Level 1
Sector
XX (2 digits)
Level 2
Industry Group
XXXX (4 digits)
Level 3
Industry
XXXXXX (6 digits)
Level 4
Sub-Industry
XXXXXXXX (8 digits)
How to read it: each additional pair of digits narrows the classification. Analysts can roll results up to a sector view, or drill down to a sub-industry peer set for valuation and performance comparison.
What “drill-down” enables in practice
- Sector level: Allocation, diversification checks, and high-level risk exposure
- Industry group/industry level: Thematic research, competitor sets, factor modeling inputs
- Sub-industry level: Most granular peer groups for valuation comps and attribution detail
The 11 GICS Sectors
The top level of GICS consists of 11 sectors commonly used for sector rotation analysis, benchmark reporting, and portfolio constraints.
| Sector | Representative coverage |
|---|---|
| Communication Services | Telecom, media, interactive media, communication platforms |
| Consumer Discretionary | Non-essential goods and services (autos, retail, leisure) |
| Consumer Staples | Essential products (food, beverages, household/personal products) |
| Energy | Oil, gas, consumable fuels, and energy equipment/services |
| Financials | Banks, insurance, capital markets, diversified financial services |
| Health Care | Providers, equipment, supplies, biotech, and pharmaceuticals |
| Industrials | Capital goods, transportation, commercial/professional services |
| Information Technology | Software, hardware, semiconductors, IT services |
| Materials | Chemicals, metals/mining, construction materials, packaging, forest products |
| Real Estate | REITs and real estate management/development (as defined in the structure) |
| Utilities | Electric, gas, water utilities, and related utility operations |
How GICS Classification Works
GICS is designed to assign each company to the category that best reflects its primary business activity. This supports consistent benchmarking and peer comparison across markets. Classification can be reviewed as companies evolve through acquisitions, divestitures, and business model shifts.
What “primary business activity” means
- Single primary assignment: A company generally has one main GICS placement for reporting and benchmarking.
- Economic relevance: The goal is comparability in investment analysis, not listing every activity a company performs.
- Stability bias: Changes are typically made when business fundamentals have materially shifted.
Where classification can be challenging
- Conglomerates: Multi-segment businesses may require best-fit decisions.
- Convergence: Technology, media, consumer platforms, and services can blur boundaries.
- Corporate actions: M&A, spin-offs, and major pivots can trigger review events.
Common Uses of GICS Codes
- Benchmarking and reporting: Standardize sector/industry exposure reporting across portfolios and markets.
- Portfolio construction: Manage concentration risk and enforce sector constraints.
- Performance attribution: Separate sector allocation effects from security selection effects.
- Peer sets: Improve comparability for valuation and fundamentals by grouping like businesses.
- Index and ETF design: Build sector and industry indices and structured products using consistent grouping.
- Research and backtesting: Analyze sector rotation, factor behavior, and long-horizon trends.
Reviews and Updates
GICS classifications are maintained through ongoing review, and the overall structure can evolve to reflect changes in the global economy. When major structural revisions occur, they are typically communicated with implementation timelines and supporting documentation so market participants can update benchmarks and historical analysis appropriately.
Analyst tip: If a backtest shows “sector drift,” check whether your sample period includes significant GICS structure changes or large-scale reclassifications. Classification evolution can affect historical comparability even when a company’s fundamentals are stable.
GICS vs Other Classification Systems
The right classification system depends on your workflow. GICS is the global standard for public equity analysis and benchmarking. For operational business databases (CRM segmentation, lead targeting, and market sizing), most organizations use SIC and NAICS.
| System | Primary use case | Common users |
|---|---|---|
| GICS | Portfolio management and equity benchmarking | Investment analysts, fund managers, index providers |
| NAICS | Economic statistics, production-based market sizing | B2B marketers, researchers, government agencies |
| SIC | Operational segmentation and historical comparability | Sales operations, data teams, compliance workflows |
Need to segment your own database? While GICS is built for public equity analysis, most B2B teams use SIC or NAICS for marketing and sales operations.
Append SIC/NAICS codes to your file here →
For operational standards context, see Industry Classification Systems Overview, What is a NAICS Code?, What is a SIC Code?, and SIC vs NAICS Codes.
Frequently Asked Questions
- Who created GICS?
GICS was developed by MSCI in collaboration with S&P Dow Jones Indices to provide a global framework for classifying public companies for investment analysis and benchmarking. - How is a GICS code structured?
GICS uses a four-level hierarchy. The full code is an 8-digit identifier: 2 digits for Sector, 4 for Industry Group, 6 for Industry, and 8 for Sub-Industry. - Is GICS the same as NAICS or SIC?
No. GICS is designed for public equity analysis and benchmarking. NAICS and SIC are industry classification standards widely used for economic reporting and operational B2B segmentation. - Why might a company’s GICS classification change?
Reclassifications can occur after major business model shifts, acquisitions/divestitures, material revenue mix changes, or structural taxonomy updates that redefine category boundaries. - How do I find a company’s GICS code?
GICS classifications are typically available via MSCI resources and many market data platforms that publish sector/industry mappings based on GICS.