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 join the S&P MidCap 400, replacing Roku Inc. (NASD: ROKU) before markets open on Wednesday, November 11, according to an index announcement released Thursday.
The change was triggered by Fox Corp.'s acquisition of Roku. When an S&P 500 constituent absorbs a company listed in a lower-tier S&P index, the acquired firm is typically removed and replaced with another eligible security, a standard rebalancing procedure that index managers use to keep benchmarks representative of their respective market-cap tiers.
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For James Hardie Industries, the inclusion marks a significant milestone. Membership in the S&P MidCap 400 generally draws increased attention from institutional investors and index-tracking funds, which are required to hold constituents of benchmarks they follow. That demand can influence a stock's trading volume and liquidity profile around the effective date.
Roku's exit from the MidCap 400 reflects the completion of its acquisition by Fox Corp., an S&P 500 component. The deal's closing removes Roku as an independently traded equity, making its spot in the index available for a new entrant such as James Hardie, an Ireland-headquartered building products manufacturer with significant operations in the United States.
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