The other incidents last year after the rebalancing were changes made because of mergers and acquisitions, or spinoffs of companies already in the index, so the committee had to make the changes after the rebalance due to the timing of the events. See the excerpts below:
NEW YORK, Sept. 17, 2019 /
PRNewswire/ -- CDW Corp. (NASD: CDW) will replace Total System Services Inc. (NYSE: TSS) in the S&P 500 effective prior to the open of trading on Monday, September 23. S&P 500 constituent Global Payments Inc. (NYSE: GPN) is acquiring Total System Services in a transaction expected to be completed after the market close today.
NEW YORK, Sept. 20, 2019 /
PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 effective prior to the open of trading on Thursday, September 26:
- NVR Inc. (NYSE: NVR) will replace Jefferies Financial Group Inc. (NYSE: JEF) in the S&P 500, and Jefferies Financial Group will replace NVR in the S&P MidCap 400. Jefferies Financial Group is spinning off its holdings in Spectrum Brands Holdings Inc. (NYSE: SPB) and post spin-off, Jefferies Financial Group will be more representative of the mid-cap market space. Spectrum Brand Holdings will not be added to the S&P Composite 1500 at this time.
NEW YORK, Sept. 26, 2019 /
PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400 and S&P SmallCap 600:
- Las Vegas Sands Corp. (NYSE: LVS) will replace Nektar Therapeutics (NASD: NKTR) in the S&P 500, and Nektar Therapeutics will replace Sotheby's (NYSE: BID) in the S&P MidCap 400 effective prior to the open of trading on Thursday, October 3. BidFair USA LLC is acquiring Sotheby's in a transaction expected to be completed soon pending final conditions. Nektar Therapeutics is ranked near the bottom of the S&P 500 and has a market capitalization more representative of the mid-cap market space.
After these, there weren’t any changes until near the end of November, when there were two more changes in a couple weeks for similar mergers and acquisitions and spinoffs. Aside from quarterly rebalancings and these other events, the only time they made a change in the last year without an event involving a company already in the S&P 500 was adding Dominos Pizza in May 2020 shortly after their Q1 earnings report.
Also for all of the moves they made in the past year, they were moving companies from the S&P 500 to the S&P MidCap 400, so it seems that S&P 400 companies are their preferred choices when it comes to moves. The S&P 400 is supposed to be for companies between $2-$8B market cap, so there’s no way Tesla gets added there first.
Overall, unless there are some mergers and acquisitions in the next few weeks, and the committee decides that is how/when they want to add Tesla in (and add them in at the acquired companies weighting), I think we will be waiting until Q3 earnings call, which hopefully should be enough to convince the committee they should not wait any longer.