James Hardie Industries to Join S&P MidCap 400 on Nov. 11
James Hardie Industries will replace Roku in the S&P MidCap 400 after Fox Corp. acquired Roku, triggering the index reshuffle.
James Hardie Industries plc (NYSE: JHX) is set to enter the S&P MidCap 400, replacing Roku Inc. (NASDAQ: ROKU) when markets open Wednesday, November 11, according to an index announcement.
The change was triggered by Fox Corp.'s acquisition of Roku. When an S&P 500 company absorbs a constituent of a smaller S&P index, the acquired firm is typically removed and replaced to maintain the index's representational integrity.
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Fox Corp., listed on the Nasdaq under both FOXA and FOX, is already a member of the S&P 500. The completion of its deal for Roku rendered the streaming-device and platform company ineligible for continued membership in the MidCap 400, opening the slot for the building-materials manufacturer James Hardie.
James Hardie Industries, an Irish-domiciled company traded on the New York Stock Exchange, is best known for fiber cement siding and exterior building products widely used in residential construction across the United States and internationally. Its addition to the index is likely to draw incremental demand from funds that passively track the S&P MidCap 400.
Index reconstitutions of this kind often generate short-term trading activity as portfolio managers adjust holdings to reflect the new composition before the effective open. Continue reading at All Financial Services & Investing.
