S&P Dow Jones Indices is a division of credit ratings agency S&P Global. S&P Dow Jones Indices is the largest global resource for index-based concepts, data and research. It also provides some of the most well-known financial market indicators like the S&P 500 and the Dow Jones Industrial Average. Charles Dow invented the first index in 1884, and now it is home to over 1 million indices across many asset classes.
ASX Index Changes
These index changes are important because some exchange traded funds (ETFs) are only allowed to buy shares in the ASX 200 or ASX 300, which means they have to buy and sell based on these changes.
Some actively-managed funds are also only allowed to buy shares of a certain size. Small cap fund managers can’t buy ‘big’ shares and large cap managers can’t go for ‘small’ shares.
There were no changes in the S&P/ASX 20 or the S&P/ASX 50.
S&P/ASX 100 Index Changes
Fund manager Pendal Group Limited (ASX: PDL) is being removed after a difficult 2019 and a continuing shift to passive investing through ETFs.
S&P/ASX 200 Index Changes
Fast food company Collins Foods Limited (ASX: CKF), resource business Gold Resources Limited (ASX: GOR), lottery business Jumbo Interactive Limited (ASX: JIN), fintech company Netwealth Group Limited (ASX: NWL), medical device business Polynovo Ltd (ASX: PNV) and resources business Silver Lake Resources Limited. (ASX: SLR) have managed to get into the ASX 200.
Meanwhile Ardent Leisure Group Ltd (ASX: ALG), Australian Pharmaceutical Industries Ltd (ASX: API), Eclipx Group Ltd (ASX: ECX), Emeco Holdings Limited (ASX: EHL), Pact Group Holdings Ltd (ASX: PGH) and Sigma Healthcare Ltd (ASX: SIG) have been kicked out of the ASX 200.
S&P/ASX 300 Index Changes
There are too many changes to list in the ASX 300, but some of the ones to make it in are Audinate Group Ltd (ASX: AD8), Bubs, Data#3 Limited (ASX: DTL), iSignthis Ltd (ASX: ISX), Lifestyle Communities Limited (ASX: LIC) and Zip Co.
The growth that some of the entrants into the ASX 200 and ASX 300 have produced to get into their respective indices have been impressive, but I’m not going to alter my investment decisions just because of how big they are – as interesting as it is. I’m always going to be attracted to shares in the free report below.