Upcoming S&P 500 Index Rebalance to Include KKR, CrowdStrike, and GoDaddy

The Standard & Poor's 500 index, a bellwether for the U.S. equity market, is set to undergo a significant reshuffling. Investment and private equity firm KKR & Co. Inc. KKR, cybersecurity company CrowdStrike Holdings, Inc. CRWD, and web services provider GoDaddy Inc. GDDY are poised to join the S&P 500 ranks. They will be replacing staffing firm Robert Half International RHI, financial services group Comerica Incorporated CMA, and biotechnological company Illumina Inc. in the esteemed index. This change reflects an ongoing shift in market dynamics and the growing influence of technology and internet-related industries.

About the Incoming S&P 500 Companies

Kohlberg Kravis Roberts & Co. L.P., trading as KKR, is a well-known entity in the investment sector, managing multiple alternative asset classes including private equity, energy, infrastructure, real estate, and credit. CrowdStrike's presence in the S&P 500 highlights the increasing prioritization of digital security, as the company specializes in cloud-delivered endpoint and cloud workload protection. Joining them, GoDaddy, a giant in web services focusing on cloud-based technologies, illustrates the robust growth and importance of the cloud services industry.

Understanding the Impact on Outgoing Firms

As newer industries gain representation in the S&P 500, the departure of Robert Half International, symbolized as RHI, marks a notable transition. Based in California, Robert Half has been a global player in human resource consulting. Comerica Incorporated, with its stock ticker CMA, is another entity exiting the index; this Dallas-based financial services company has been emblematic of traditional banking sectors. Their removal, along with that of Illumina, underscores the changing composition of the index to favor newer industry trends over legacy sectors.

ETFs, Rebalance, Indexes