Companies get added to and subtracted from the S&P 500 (SNPINDEX:^GSPC) every year, but that doesn't make it any easier for shareholders in the companies that get the boot. In the following video, Motley Fool contributor John Maxfield discusses why this happens, paying special attention to recent exiles J.C. Penney (NYSE:JCP) and Abercrombie & Fitch (NYSE:ANF).

John Maxfield and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.