S&P Global to Launch its First AI-Enhanced Sector Rotation Index

Rhea-AI Summary

S&P Global (NYSE: SPGI) announced the launch of the S&P 500 3AI Sector Rotator Index on October 23, 2025, its first AI-enhanced index that uses machine learning predictive scores from 3AI to identify the three highest-ranked S&P 500 sectors at each rebalance.

The index combines 3AI's explainable forecasting with S&P Dow Jones Indices' rules-based governance to offer systematic, adaptive sector allocations and represents an extension of S&P DJI's factor-based and AI-themed index offerings.

Insights

Index Strategy Expert

S&P DJI launches an AI-driven sector-rotation benchmark that blends machine learning forecasts with rules-based index governance.

The index mechanically selects the three highest-ranked S&P 500 sectors using 3AI's machine-learning scores at each rebalance, creating adaptive sector tilts while preserving a transparent, rule-based construction. This design converts predictive signals into systematic exposures without discretionary security selection.

Key dependencies and risks include the predictive model's out-of-sample reliability and the rebalancing cadence; both determine turnover and realized tracking versus the S&P 500. Watch the first published methodology, live rebalancing dates around Oct 23, 2025, and any disclosed turnover or transaction-cost assumptions over the next 3–12 months for practical implementation signals.

AI-in-Finance Specialist

The collaboration pairs 3AI's explainable forecasts with S&P DJI governance to operationalize AI in index construction.

3AI provides explainable machine-learning forecasts mapped to forward-return signals; S&P DJI applies a ruleset to translate those scores into sector weights. This approach limits black-box risk by keeping the portfolio-engine mechanics public while using predictive analytics only for selection inputs.

Monitor published validation metrics for 3AI's forecasts, any disclosure of feature sets or holdout performance, and periodic governance reviews that address model drift and data changes. Expect meaningful disclosure updates and performance reporting within the first 12 months after launch to assess predictive contribution versus pure factor or cap-weighted sector benchmarks.

NEW YORK, Oct. 23, 2025 /PRNewswire/ -- S&P Global (NYSE: SPGI) today announced plans to expand its S&P Dow Jones Indices ("S&P DJI") index offering with the launch of the S&P 500 3AI Sector Rotator Index, an innovative benchmark that incorporates artificial intelligence (AI), through machine learning, to analyze company data and market signals to forecast sector performance, enabling systematic and adaptive allocations across S&P 500 sectors. This launch represents S&P DJI's first AI-enhanced index using predictive modeling as a tool and marks the beginning of a broader initiative to explore the use of AI in index design.

As the demand for smarter and more adaptive investment tools grows, S&P DJI continues to deliver innovative benchmarks that blend traditional index methodology with cutting-edge technology. The S&P 500 3AI Sector Rotator Index utilizes scores generated by 3AI using a machine learning model to identify the three highest-ranked sectors at each rebalancing date. Designed to provide adaptive exposure to U.S. equity sectors, the index employs a rules-based methodology that incorporates AI technology and represents an extension of S&P DJI's leadership in factor-based indexing.

"By applying machine learning to identify sector rotation opportunities, we are offering market participants a dynamic, proactive approach to overweighting sector exposures within the S&P 500," said Cameron Drinkwater, Chief Product and Operations Officer at S&P Dow Jones Indices. "While the index is driven by machine learning models, it is uniquely transparent, bringing together the benefits of active systematic sector strategies with the transparency and robust governance of high-quality index design."

3AI, a UK-based leader in AI-powered investment intelligence, provides the predictive analytics that underpin the S&P 500 3AI Sector Rotator Index. Trusted by global investment institutions, 3AI's forecasting system applies explainable machine learning across global equities by mapping deep company analysis and business-cycle sensitivities to forward return forecasts, enabling adaptive, data-driven sector rotation. The collaboration integrates 3AI's proprietary AI forecasting with S&P DJI's rigorous index design, marking a milestone in the use of predictive intelligence for benchmark construction.

"This collaboration transforms AI from concept to capability in index construction," said Jacob Ayres-Thomson, Founder and CEO of 3AI. "By combining S&P DJI's benchmark expertise with 3AI's predictive models, we're building adaptive, forward-looking indices that reflect how information dynamically shapes markets—advancing the next generation of intelligent benchmarks."

While S&P DJI has previously introduced AI-themed and multi-asset indices, this new initiative represents a significant advancement in using AI-related technology as a tool to facilitate constituent selection within an index.

To learn more about S&P DJI's AI-Powered Indices, visit: https://www.spglobal.com/spdji/en/index-family/dividends-factors/ai-powered/ai-powered/#overview 

Learn more about Artificial Intelligence at S&P Global: https://www.spglobal.com/en/research-insights/market-insights/artificial-intelligence 

For more information about S&P Dow Jones Indices:https://www.spglobal.com/spdji/en/.

Media Contacts:

Silke Mcguinness 
S&P Dow Jones Indices
(+1) 415 205 8414
silke.mcguinness@spglobal.com 

Alyssa Augustyn
Americas Communications
(+1) 773 919 4732
alyssa.augustyn@spglobal.com

Asti Michou
EMEA Communications
+44 (0) 79 70 887 863
asti.michou@spglobal.com 

Orla O'Brien
S&P Global
+1 857-407-8559
orla.obrien@spglobal.com

ABOUT S&P GLOBAL
S&P Global (NYSE: SPGI) provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. From helping our customers assess new investments to guiding them through sustainability and energy transition across supply chains, we unlock new opportunities, solve challenges and accelerate progress for the world. We are widely sought after by many of the world's leading organizations to provide credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help the world's leading organizations plan for tomorrow, today.

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500^® and the Dow Jones Industrial Average^®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, including disclaimers, visit https://www.spglobal.com/spdji/en/.

The use of "3AI" in the name of the index is a reference to the machine learning technology firm, 3AI, that provides the machine learning algorithm used by S&P Dow Jones Indices in the construction of the S&P 500 3AI Sector Rotator Index.  For more information, on the index methodology and construction, please visit: https://www.spglobal.com/spdji/en/methodology/article/sp-500-3ai-sector-rotator-index-methodology/ 

 

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SOURCE S&P Global

FAQ

What is the S&P 500 3AI Sector Rotator Index (SPGI) launched on October 23, 2025?

It is S&P DJI's first AI-enhanced index that uses 3AI machine learning scores to select the top three S&P 500 sectors at each rebalance.

How does the 3AI model influence sector selection in the new SPGI index?

3AI provides explainable machine learning forecasts that rank sectors; the index weights the three highest-ranked sectors at each rebalancing date.

Who provides the AI forecasting for the S&P 500 3AI Sector Rotator Index?

3AI, a UK-based provider of AI-powered investment intelligence, supplies the predictive analytics used in the index.

Will the S&P 500 3AI Sector Rotator Index use rules-based governance?

Yes; the index combines machine learning with a transparent, rules-based methodology and S&P DJI governance.

Does the SPGI announcement change S&P DJI's existing index methodology framework?

The announcement extends S&P DJI's index offerings by incorporating predictive machine learning for constituent selection while retaining rules-based design and governance.

Where can investors find more information about S&P DJI AI-powered indices and the new SPGI index?

Information is available on S&P DJI's website under AI-powered indices and on S&P Global's AI research pages linked in the announcement.