GICS vs. ICB
The GICS (Global Industry Classification Standard) and ICB (Industry Classification Benchmark) classification systems are among the world's most important standards for the systematic classification of listed companies. Both systems aim to depict the economic activity of a company in a transparent, comprehensible and comparable manner.
The most important facts at a glance
A brief overview of the most important features of the leading industry benchmarks in comparison, as well as key similarities and differences.
| Feature | GICS | ICB | |
|---|---|---|---|
| Origin | Developed by MSCI & S&P; strongly investor- and index-driven | Developed by FTSE / LSEG; strongly stock market and market driven | |
| Regional relevance | Global standard, particularly dominant in North America and in the international ETF environment | Leading standard in Europe, especially on LSEG-, Euronext- and FTSE-based trading venues | |
| Classification philosophy | Economic-functional view, orientation towards earnings and business model profile | Operational-functional view, orientation towards actual market and business activities | |
| Structural levels | 4 levels: Sectors → Industry Groups → Industries → Sub-Industries | 4 levels: Industries → Supersectors → Sectors → Subsectors | |
| Number of top level | 11 Sectors | 11 Industries | |
| Dealing with conglomerates | Focus on sales/profit profiles (economic weighting) | Focus on operational activities and functional core business | |
| Allocation of platform and digital models | Partially "technology-heavy" or categorized in Communication Services | Stronger focus on operational output (e.g. e-commerce | ). e.g. e-commerce → retail) |
| Historical features | 2016: real estate as a separate sector; 2018: major conversion tech/communications | 2020: comprehensive modernization, esp. for digital economy | |
| Industry traditions | US-influenced: focus on technology and communication | Europe-influenced: raw materials, energy, industry historically significant | |
| REIT treatment | Internal real estate sector with high visibility | Granular, differentiated, more internal categories | |
| Update logic | Needs-based reforms to map new business models & for index balancing | Market-oriented adjustments according to trading center and industry trends | |
| Analytical applicability | Focus on cyclicality, valuation logics, cash flow analyses | Focus on market segment logic, industry comparisons and regional benchmarking |
In a Nutshell
Commonalities
- Multi-level structure:
Both systems use four hierarchy levels (top level → several sub-levels) to map industries granularly. - Aim of comparability:
GICS and ICB are intended to systematically group companies, define peer groups and make sectoral market structures visible. - Broad market coverage:
Both systems cover all major economic sectors - from technology to energy to financial services. - Regular updates:
Both GICS and ICB are revised at irregular intervals to reflect technological developments and new business models. - Relevance for index providers and research:
Both classifications determine the composition of numerous indices and serve as a structuring and benchmarking framework for analysts. - International use:
Both standards are used globally, albeit with a regional focus: GICS more worldwide, ICB more in Europe.
Differences
- Philosophical orientation:
- GICS: investor-logical, often economically oriented (earnings profiles, growth drivers, cyclicality).
- ICB: operationally logical, more strongly oriented towards real market activity.
- Institutional origin:
- GICS from MSCI & S&P - clearly index- and investor-driven.
- ICB from FTSE/LSEG - more stock market and market driven.
- Regional importance:
- GICS dominates globally, particularly in North America and in the institutional ETF/index space.
- ICB is the standard for many European trading venues (e.g. LSEG, Euronext).
- Dealing with conglomerates:
- GICS is often based on turnover/weighting logic (economic focus).
- ICB prioritizes operational activity or market position.
- Dealing with new business models:
- GICS tends to move platform companies into communications or technology areas.
- ICB ranks them more strongly according to operational output (e.g. platform → retail).
- Historical industry traditions:
- ICB reflects more strongly European industry structures (raw materials, energy, industrial conglomerates).
- GICS reflects more strongly US-influenced sector logics (tech, communication services).
- Real estate classification:
- GICS separated real estate as a separate sector in 2016.
- ICB was traditionally more granular and differentiated.
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Source information:
As at: 09/2025
