WR1 General Discussion, page-26442

@Helios11

My understanding is that certain ETF's and super funds will need to buy, so that's a positive. The negative is that it usually results in increased short positions, which is obviously a negative. The net result is usually slightly positive though as the funds taking long positions usually outweigh the funds taking short positions.

If a company falls out of an index (AGY, LKE, etc), the effect is usually inverse (slightly negative), as the small amount of buying pressure for short covering is usually outweighed by the selling pressure of funds who are long and need to exit their positions after the company is dropped from an index.

Removal/inclusion from larger indexes (ASX200/300) has a larger effect, because people playing with their super can usually only buy into companies that are at least listed on the ASX300. I'm with Australian Super, and I can no longer buy AGY for example. So selling pressure is removed when a company is dropped from an index.

It will likely need until 18 March to play out, given that is the rebalance date. But I see this as a positive for WR1.