CrowdStrike shares rose as much as 10% on Monday following the announcement that the cybersecurity software provider would replace Comerica on the S&P 500.
CrowdStrike, global investment giant KKR, and web domain seller GoDaddy will join the benchmark index, replacing Robert Half and Illumina, respectively, The adjustments will take effect on June 24.
Shares of firms added to the benchmark frequently rally following the announcement, as fund managers who track the index alter their portfolios on a regular basis to reflect the additions.
Evercore’s trading desk anticipates indexers purchasing approximately 30 million CrowdStrike shares.
Security ETFs rose on Monday, with the First Trust Nasdaq Cybersecurity ETF rising 1.3% and the Amplify Cybersecurity ETF — ticker symbol “HACK” — rising 1.2%.
Source (CNBC)
