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Index inclusion ain’t what it used to be
  • According to Morningstar data, inclusion into an index no longer attracts the usual rise (on announcement) and then fall in stock price.
  • Indeed, the up-and-down trajectory that was once the fingerprint of the index inclusion effect now resembles a flat line that runs from announcement date through the weeks following inclusion in the S&P 500.


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Morningstar, Inc.
The Index Inclusion Effect Isn't Cause for Concern
The once-powerful benchmark bump has dissipated over time.

Modern Growth Investing's avatar
its because the giants have become too big, time to kill some
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