The S&P 500 Rebalancing and the Stocks That Could be Added

The S&P 500 (SPX) rebalances every quarter, with the next rebalancing announcement scheduled for this Friday after the market close, effective as of December 19.

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To be eligible for inclusion, companies must meet several requirements, such as a market capitalization of at least $22.7 billion, a minimum monthly trading volume of at least 250,000 shares during the past six months, and a primary listing on a U.S. exchange.

The Potential Additions to the S&P 500

On Monday, JPMorgan published a list of companies that could be added to the index:

• Vertiv Holdings (VRT)
• Marvell (MRVL)
• Ferguson Enterprises (FERG)
• Cheniere Energy (LNG)
• Alnylam Pharmaceuticals (ALNY)
• Heico (HEI)
• Coupang (CPNG)
• FTAI Aviation (FTAI)
• Veeva Systems (VEEV)
• Reddit (RDDT)
• Zoom (ZM)
• Tradeweb Markets (TW)
• Royalty Pharma (RPRX)
• LPL Financial (LPLA)
• SoFi (SOFI)
• First Citizens BancShares (FCNCA)

Stocks usually gain upon S&P 500 inclusion, as funds tied to the index are required to purchase the new additions.