What is the Industry Classification Benchmark?

The Industry Classification Benchmark (ICB) is a practice begun by Dow Jones and the FTSE in 2005, used to separate markets into sectors within the macroeconomy. The ICB uses a model of ten industries, sectioned into 19 super sectors, which are then further partitioned into 41 sectors and 114 sub sectors.

Where have you heard about the Industry Classification Benchmark?

The ICB is now totally owned by FTSE and is in use globally to divide and specify corners of the market, allowing investors to study and compare detailed industry trends. It is currently used by the NYSE, NASDAQ and several other markets situated around the globe.

What you need to know about the Industry Classification Benchmark.

All of the ICB sectors are represented on the NYSE apart from non equity investment instruments and equity investment instruments. The main industry sectors of this benchmark are Oil and Gas, Basic Materials, Industrials, Consumer Goods, Health Care, Consumer Services, Telecommunications, Utilities, Financials and Technologies. Its sub sectors include Trucking, Distilling and Vintners, and Tobacco. In 2011, the American publishing and financial information firm Dow Jones divested itself of its 50% interest from ICB and reported that it was creating its own version of it.