James Hardie S&P MidCap 400 — James Hardie Industries plc is set to enter the S&P MidCap 400, with the index change scheduled to take effect before trading opens on Wednesday, November 11. The James Hardie S&P MidCap 400 addition will see the NYSE-listed company replace Roku Inc., according to an announcement from S&P Dow Jones Indices.
The move follows the completion of Fox Corp.’s acquisition of Roku. Fox, an S&P 500 constituent, closed the deal on Friday, November 6, the same day the index provider detailed the upcoming switch. Roku currently trades on Nasdaq under the ticker ROKU.
Details of the Index Adjustment
James Hardie, which trades under the ticker JHX, will be classified in the Materials sector within the S&P MidCap 400. Roku, the outgoing component, is categorized in the Communication Services sector. The index provider listed both the addition and the deletion with the same effective date: prior to the opening of trading on November 11.
The change is part of the regular maintenance of the S&P MidCap 400, which tracks mid-capitalization U.S. equities. S&P Dow Jones Indices, a division of S&P Global, manages the index and announced the adjustment through a press release distributed by PR Newswire.
Background on the Companies and the Index
James Hardie Industries plc is listed on the New York Stock Exchange. The company’s inclusion in the S&P MidCap 400 will place it alongside other mid-cap companies tracked by the index. Roku’s departure from the index comes after its acquisition by Fox Corp., which was completed on November 6.
Fox Corp. is a constituent of the S&P 500, and its acquisition of Roku triggered the need to replace Roku in the S&P MidCap 400. The index provider did not disclose additional terms of the acquisition or further details about the index change beyond the effective date and sector classifications.
S&P Dow Jones Indices describes itself as the largest global resource for essential index-based concepts, data and research. The firm is home to widely followed financial indicators, including the S&P 500 and the Dow Jones Industrial Average. According to the company, more assets are invested in products based on its indices than products based on indices from any other provider worldwide.
The index provider has been developing indices since Charles Dow invented the first one in 1884. S&P Dow Jones Indices operates as a division of S&P Global, which is listed on the NYSE under the ticker SPGI. The firm provides intelligence to individuals, companies and governments for decision-making.
What the Change Means for the Index
The replacement of Roku with James Hardie will alter the sector composition of the S&P MidCap 400, shifting a spot from Communication Services to Materials. The change is effective before the market opens on November 11, giving investors and index-tracking funds time to adjust to the new lineup.
Index adjustments are typically made to reflect corporate actions such as mergers and acquisitions. In this case, the acquisition of Roku by Fox Corp. removed Roku from the mid-cap index, prompting the addition of James Hardie. The announcement provided a summary table showing the effective date, index name, action, company name, ticker and GICS sector for both companies.
For James Hardie, joining the S&P MidCap 400 marks a new phase of index membership. For Roku, the deletion follows the closing of its acquisition by Fox Corp. on November 6. The index provider’s announcement did not include any further details about future changes or the performance of either company.
