S&P Dow Jones Indices, a division of S&P Global, has announced changes to the S&P MidCap 400 and SmallCap 600 indices, set to take effect on November 7, 2023. The reshuffle involves Burlington Stores Inc. (NYSE: BURL) replacing Envestnet Inc. (NYSE: ENV) in the MidCap 400, while Envestnet will take the spot of Hostess Brands Inc. (NASD: TWNK) in the SmallCap 600.
This adjustment coincides with The J. M. Smucker Co., an S&P 500 constituent, being on the verge of acquiring Hostess Brands through an exchange offer, contingent on specific conditions. The closure of this deal is anticipated to align with the index changes.
The repositioning of Envestnet to the SmallCap 600 is intended to provide a more accurate representation of the small-cap market segment. These changes have an impact on the GICS sectors, affecting Consumer Discretionary (Burlington Stores) and Information Technology (Envestnet) in the MidCap 400, as well as Information Technology (Envestnet) and Consumer Staples (Hostess Brands) in the SmallCap 600.