re: Ann: ZSP: S&P DJ Indices Announces June Q...
Depends on the fund tszy but overall no. If it's an index tracker-type fund then yes it will need to have FGE in there at some point but I believe that most still have a little latitude on timing. For non-index funds it might bring FGE up on the radar of opportunities but not compel them to buy. You might get an effect whereby there's the expectation of fund buying which ends up supporting the price anyway but my belief is you get a bigger effect when stocks drop out of indexes than when they are added. Many funds of all sorts have mandates whereby they can't invest outside of an index; so adding to an index doesn't necessarily make them buy, but dropping them out necessarily makes them sell. Haven't seen any quant work on this although I suspect it is out there if you look for it (and it might even prove me wrong!).
FGE Price at posting:
$4.29 Sentiment: None Disclosure: Not Held
