Marvell Technology and Flex will replace Pool Corporation and Campbell Soup Company in the S&P 500 index, effective before market open on December 23, 2024.
S&P Dow Jones Indices announced the changes as part of routine index management. Marvell Technology designs semiconductor products for data centers and networking applications. Flex provides electronics manufacturing services and supply chain solutions to technology clients. Both companies bring significantly larger market capitalizations than the departing firms.
Pool Corporation, a distributor of swimming pool supplies and equipment, and Campbell Soup, the condensed soup maker and packaged food producer, no longer meet S&P 500 criteria for market size and liquidity. The index periodically replaces constituents to reflect current economic conditions and corporate valuations.
This shift underscores the S&P 500's ongoing technology tilt. The semiconductor and electronics manufacturing sectors now command greater weight in the broad market index, reflecting investor demand for exposure to artificial intelligence infrastructure and data center buildout. Marvell stock has climbed substantially on strength in AI and cloud computing demand.
For index funds and passive investors tracking the S&P 500 through vehicles like Vanguard 500 ETF (VOO), iShares Core S&P 500 ETF (IVV), and SPDR S&P 500 ETF (SPY), the change means automatic portfolio rebalancing on December 23. Fund managers must buy Marvell and Flex shares while selling Pool and Campbell positions.
This index addition typically benefits Marvell and Flex through increased demand from passive investors. The move also signals reduced relevance of traditional consumer staples and discretionary consumer spending in the current market environment, where technology dominance remains entrenched.
Investors in S&P 500 index funds own both the entering and ex