The S&P SmallCap 600 Index is poised for a significant reconstitution, with thirteen new companies set to join its ranks, effective prior to the opening of trading on Monday, December 22, 2025. This quarterly rebalancing aims to ensure the index remains a relevant and accurate representation of the small-cap market segment.
The changes, announced by S&P Dow Jones Indices, will see the addition of Primoris Services (PRIM), Casella Waste Systems (CWST), Indivior (INDV), Hawaiian Electric Industries (HE), LKQ (LKQ), Solstice Advanced Materials (SOLS), Mohawk Industries (MHK), Under Armour (UAA), Power Integrations (POWI), Perrigo Company (PRGO), Iridium Communications (IRDM), Marriott Vacations Worldwide (VAC), and Insperity (NSP) to the index.
On the flip side, SPX Technologies (SPXC), Dycom Industries (DY), Borgwarner (BWA), Hecla Mining (HL), Ready Capital (RC), SITE Centers (SITC), Thryv Holdings (THRY), Helen of Troy (HELE), AdvanSix (ASIX), Sturm Ruger & Co (RGR), MGP Ingredients (MGPI), Ceva (CEVA), and Shoe Carnival (SCVL) will be removed.
The decision to add and remove these companies reflects the dynamic nature of the market, and the need for the index to accurately mirror the small-cap universe. Companies being removed no longer align with the small-cap criteria, while the additions reflect firms that now meet the index's requirements. This ensures the S&P SmallCap 600 remains a reliable benchmark for investors seeking exposure to this market segment.
List of Stocks Added In S&P 600 December Rebalance, Sorted By Market Cap
The inclusion of Primoris Services (PRIM), a specialty contracting services provider, highlights the continued growth in infrastructure and construction sectors. Similarly, the addition of Casella Waste Systems (CWST) underscores the increasing importance of environmental services and waste management. Indivior (INDV), a pharmaceutical company focused on addiction treatment, reflects the growing attention on healthcare and the opioid crisis. Hawaiian Electric Industries (HE), the primary electricity supplier in Hawaii, provides exposure to the utilities sector and the shift towards renewable energy.
LKQ Corp (LKQ), a vehicle products distributor, Mohawk Industries (MHK), a flooring manufacturer, and Solstice Advanced Materials (SOLS) represent the industrial and materials sectors. The inclusion of Under Armour (UA, UAA) brings a well-known name in sports apparel to the index, while Power Integrations (POWI), a semiconductor company, reflects the importance of the technology sector even within the small-cap space. Perrigo Company plc (PRGO), a global healthcare supplier, diversifies the index's healthcare exposure. Iridium Communications Inc (IRDM), a satellite communications company, offers exposure to the aerospace and technology sectors. Marriott Vacations Worldwide Corp (VAC) and Insperity (NSP) provide exposure to the consumer discretionary and business services sectors, respectively.
Bull Case:
- Inclusion in the S&P SmallCap 600 typically leads to increased visibility and demand for a company's shares from index-tracking funds.
- The newly added companies represent growing sectors such as infrastructure (Primoris Services), environmental services (Casella Waste Systems), and healthcare (Indivior).
- The reconstitution ensures the index remains a relevant and accurate benchmark for the dynamic small-cap market segment.
- The additions provide investors with diversified exposure to various sectors including technology, consumer discretionary, and industrials.
Bear Case:
- Companies removed from the index can face significant selling pressure as institutional investors adjust their portfolios.
- The removal of certain companies may reflect sector-specific underperformance or negative shifts in market sentiment.
- Index rebalancing can cause short-term price volatility for both the stocks being added and those being removed.
- The dynamic nature of the small-cap universe means that constituents are subject to frequent changes based on market capitalization and performance criteria.
Changes to major indices can have a noticeable impact on the stock performance of both the added and removed companies. Inclusion in the S&P SmallCap 600 typically leads to increased visibility and demand for a company's shares, as index-tracking funds and other institutional investors adjust their portfolios to reflect the new composition of the index. Conversely, removal from the index can lead to selling pressure, as these funds reduce their holdings.
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