For stock investors, one way to prosperity on Monday was by having a position in medical tech company Waystar (WAY -0.95%). After all, it was an outlier in the best way possible, since it shares zoomed almost 10% skyward on news that it'll be a component in a popular stock index.
That gain was particularly impressive, as the benchmark S&P 500 (^GSPC 0.30%) bumped only 0.2% higher.
That's one way to gain more prominence
That index is the S&P SmallCap 600, and Waystar will become one of the 600 selected for inclusion when a series of changes takes effect prior to market open on Monday, Sept. 22.
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In a series of adjustments to several of its indexes announced following market close on Friday, S&P Global's S&P Dow Jones Indices tapped Waystar as one of 10 titles "graduating" to the small-cap lineup. The move is part of the index company's quarterly realignment, in which at least a few of its many indexes are realigned.
With the ascension of the 10 stocks including Waystar, a corresponding number of companies were deleted from the S&P SmallCap 600. Several will be familiar to investors, including fast food restaurant operator Jack in the Box and storied tech company Xerox Holdings.
Index funds are always on the hunt
It's important to stress that inclusion on an index, no matter how prominent, does not affect the underlying fundamental performance of an affected company. However, as index funds continue to be hotly popular, the increased demand should at least support their stock price.
