Announcement
Forced buy
Bid ends
Fade
Play
Announcement — S&P adds RDDT; every S&P 500 tracker must buy its index weight, valuation-blind, before the switch.
S&P 500 inclusion as a one-time passive liquidity event
S&P DJI committee
adds RDDT · Aug 18 2026
AvalonBay removed
Equity Residential deal
index weight
S&P 500-trackers · passive complex
ETFs · mutual funds · indexed mandates
valuation-blind bid
forced demand
~2.8x ADV
short-gamma
bid ends
RDDT float
available supply
free float ↓
passive custody ↑
shares shift to passive trackers
excess return
mechanical pop
rises with forcing
fades when bid ends
fundamentals · unchanged
earnings · growth · multiple
index flow does not reprice
announcement
effective open
after