Companies get added to and deleted from the S&P 500 (^GSPC 0.52%) all the time. But can it be predicted? In the following video, Motley Fool contributor John Maxfield discusses the two main reasons companies get booted from the index and what impact being added has on the short- and long-term performance of stocks.
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Why do companies get removed from the S&P 500, and what impact does being added have on short- and long-term performance?
Erin Miller, John Maxfield, and The Motley Fool have no position in any of the stocks mentioned. 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.
Stocks Mentioned
S&P 500 Index
^GSPC
$6,173.07
(0.52%)
$32.05
J.C. Penney
JCPN.Q
Abercrombie & Fitch
ANF
$82.72
(3.58%)
$2.86
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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