Research / Flows and events

Index reconstitution

Names entering or leaving an index move because funds must trade.

The idea

Names entering or leaving an index move because funds must trade, not because anything about the company changed.

Why it might exist

Index funds trade on a known date, in known size.

Who is on the other side

Funds that must buy or sell on a schedule.

What would retire it

A clean point-in-time record of the changes cannot be had, or the effect is gone.