BofA: Robinhood could be added to S&P 500
Bloomberg writes that free trading app Robinhood Markets is a “prime candidate” for inclusion in the S&P 500, at least in the eyes of Bank of America analysts covering the shares.
(Sherwood Media is an editorially independent subsidiary of Robinhood Markets Inc.)
Being added to the index — the most widely used US market benchmark — can have a pronounced effect on shares, as it forces index funds to simultaneously buy the stock to ensure their holdings mirror the index.
In 2023, the last year for which S&P data was available, some $10 trillion of index fund assets were benchmarked to the S&P 500.
Perhaps optimism about potential inclusion is part of what’s gotten into the shares recently, as they’re up nearly 50% over the last month and bucked the flat market Wednesday to close at a new record high.
S&P is expected to make an announcement on any changes to the index after the close of trading on Friday.
In 2023, the last year for which S&P data was available, some $10 trillion of index fund assets were benchmarked to the S&P 500.
Perhaps optimism about potential inclusion is part of what’s gotten into the shares recently, as they’re up nearly 50% over the last month and bucked the flat market Wednesday to close at a new record high.
S&P is expected to make an announcement on any changes to the index after the close of trading on Friday.
