Tesla to replace Apartment Investment and Management REIT upon its inclusion in the S&P 500 Index later this month
Teslawill replace Apartment Investment & Management when it joins the S&P 500 index on December 21, S&P said in a statement on Friday.
- The apartment REIT fell as much as 5% in Friday after-hours trades, following the announcement.
- Tesla will also replace Occidental Petroleum when it's added to the S&P 100 later this month.
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Apartment Investment & Management, a $6 billion real estate investment trust, fell as much as 5% in after-hours
Tesla will be the largest company to be added to the index. The company had a market capitalization of $578 billion as of Friday's close. This will create unprecedented demand for Tesla stock as mutual funds and ETFs indexed to the S&P 500 will be forced to buy the stock.Funds that are benchmarked to the S&P 500 could also spur demand for Tesla stock. More than $10 trillion in funds are indexed and benchmarked to the S&P 500 index.
Tesla will also replace Occidental Petroleum when it's added to the S&P 100 index later this month, S&P said. Occidental fell as much as 2% in after-hours trades on Friday following the statement.The changes to the S&P 500 and S&P 100 indexes will be effective prior to the opening of trading on Monday, December 21, S&P said. Read More: 2 investment chiefs at John Hancock's $692 billion investing arm say the post-COVID recovery might disappoint in 2021 - but investors can profit with these 3 strategies
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