The S&P 500 is getting three new members this month, with Bloom Energy, Everpure, and Illumina joining the benchmark as part of its latest quarterly reshuffle.
Bloom Energy, which makes fuel-cell systems that provide on-site electricity to businesses and data centers, will replace Molson Coors Beverage, the brewer behind brands including Coors Light and Miller Lite.
Everpure, which provides data-storage and data-management technology for businesses, will replace The Trade Desk, whose software helps advertisers buy and manage digital ad campaigns.
Illumina, a maker of DNA-sequencing and genomic-analysis technology, will replace Builders FirstSource, which supplies building materials and manufactured components to the U.S. residential-construction industry.
Every few months, S&P Dow Jones Indices changes which companies are in the S&P 500. The event matters because index funds and exchange-traded funds that copy the S&P 500 have to follow those changes. Those forced trades can be large enough to move a stock's price-especially around the date when the change officially takes effect.
S&P Dow Jones Indices said Friday that the changes will take effect before trading begins on Monday, Sept. 21.
In the latest reshuffle, the information technology and healthcare sectors each gained a constituent, while the consumer staples and communication services sectors each lost one. But that doesn't necessarily translate into equivalent shifts in sector weightings.
The S&P 500 is weighted by float-adjusted market capitalization, meaning a company's influence depends largely on its market value. S&P Dow Jones Indices didn't disclose the revised constituent weights in Friday's announcement, so the precise impact on sector weights isn't known yet.
Companies can move through S&P Dow Jones Indices' indexes quite sharply, depending on stock movements and other factors. Everpure and Illumina are being promoted from the S&P MidCap 400 into the large-cap S&P 500. Meanwhile, Molson Coors, The Trade Desk, and Builders FirstSource are all headed directly to the S&P SmallCap 600 index.
Another change that stands out in Friday's reshuffle: The S&P 100, which tracks some of the largest and most established U.S. companies, is becoming considerably more technology-heavy by company count. That's a familiar trend: Technology businesses continues to take up more space near the top of the market, while longtime consumer and industrial names are losing ground.
Dell Technologies, Palo Alto Networks, Arista Networks, and Sandisk are all being added to the S&P 100. They will replace Honeywell Aerospace, Nike, Simon Property Group, and Colgate-Palmolive. All four additions are information-technology companies, while none of the departing names are. Those changes will also take effect before the start of trading on Sept. 21.
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