Yerette
Yerette
A sector taxonomy built for modern markets, not retrofitted from legacy standards.
The problem
The dominant sector classifications were built for a market that no longer exists. GICS was released in 1999; ICB followed in 2006. Both inherited assumptions from that era and have been patched rather than rebuilt.
Cloud infrastructure companies sit next to hardware assemblers. Biotech platforms share categories with generic drug manufacturers. Software businesses are classified alongside IT staffing firms. ARCA starts over: every sector is defined by how companies generate revenue today.
At a glance
13 sectors, 89 sub-sectors, 1,762 companies, in a 3-tier hierarchy.
The taxonomy
Financial Services
303
Companies
9
Sub-sectors
Industrials
254
Companies
7
Sub-sectors
Technology
199
Companies
6
Sub-sectors
Healthcare
190
Companies
6
Sub-sectors
Consumer Discretionary
186
Companies
12
Sub-sectors
Energy
115
Companies
7
Sub-sectors
Real Estate
112
Companies
11
Sub-sectors
Materials
102
Companies
7
Sub-sectors
Consumer Staples
97
Companies
5
Sub-sectors
Utilities
61
Companies
4
Sub-sectors
Communication Services
59
Companies
5
Sub-sectors
Automotive
42
Companies
5
Sub-sectors
Defense & Aerospace
42
Companies
5
Sub-sectors
Structure
Sector
Top-level economic category. The broad classification that frames everything beneath it.
Sub-sector
Granular industry group within a sector. The actual unit of comparison for peer analysis.
Company
Individual security. Inherits the full hierarchy of its sub-sector and sector assignments.
GICS uses four tiers: Sector → Industry Group → Industry → Sub-industry. ARCA collapses to three. The intermediate layer adds clicks without adding clarity, so we removed it.
Where ARCA differs
Automotive
Legacy frameworksBuried in Consumer Discretionary alongside hotels, restaurants, and apparel.
ARCAOEMs, parts, dealerships, and rental. Economically distinct from the rest of Consumer Discretionary.
Defense & Aerospace
Legacy frameworksBundled into Industrials with construction machinery and logistics.
ARCAGovernment-contract revenue, multi-decade order backlogs, and regulatory dynamics that don't apply to general industrials.
Sub-sector granularity
Legacy frameworksFour tiers: Sector → Industry Group → Industry → Sub-industry.
ARCAARCA collapses to three tiers. Cleaner navigation, no redundant middle layer.
Availability
Tanager Workstation uses ARCA as its default classification system. Sector and sub-sector assignments are queried from the ARCA database, so no separate install or sync is required.
Standalone access to the ARCA database is planned.
Inquiries
ARCA is in active development alongside Tanager Workstation.