SanDisk Shares Pop as S&P 500 Inclusion Becomes Effective Today

This price action reflects the well-documented "index effect,†where trillions of dollars in passive index funds and ETFs must purchase shares of newly added companies to maintain accurate tracking of the benchmark. For fund managers overseeing S&P 500-indexed portfolios, purchasing Sandisk stock is not discretionary but mandatory, creating a massive and predictable wave of institutional demand. The market has quickly priced in this expected buying pressure from some of the world's largest institutional inve ...