A major change is coming to how tech stocks are traded, and investors face an avoidable risk (FB, AAPL, GOOGL, AMZN, NFLX)
- Starting in September, telecom, tech, media, and entertainment companies will be combined into one S&P 500 sector called Communication Services.
- It's set to be the most crowded sector in the market, according to equity strategists at Bank of America Merrill Lynch.
- Investors should buy currently underweight parts of the sector ahead of its formation and sell afterwards as a "rule of thumb."
A new stock market sector will launch in September.