Ann: S&P DJI Announces September 2024 Quarterly Rebalance, page-3

Expected but nevertheless positive. If they hadn't already, funds that track the index will need to start adding DRO. We may see some additional analyst coverage; thought they'll all say the same thing "Good growth story but valuation is pricing in a lot of good news".

“Rebalances present massive liquidity events in markets, as all ETF providers are looking to trade their portfolio to match the updated indices,” he said.

He said ETF providers will aim to trade the changes on the close of the rebalance day.

“However, if the position to be traded is so large that it cannot it be filled on the actual re-balance day, then the fund manager will be required to trade over multiple days,” he said.

“The implication is that if a share is coming in or out of an index, it might see sustained buying or selling pressure which can impact the share price.”

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