Nike, Simon Property Group Dropped From S&P 100
- The iShares S&P 100 ETF is dropping Nike, Colgate-Palmolive, Simon Property Group, and Honeywell, replacing these established names with four technology companies tied to artificial intelligence capital spending.
- Nike reported 0% revenue growth in its most recent fiscal year, as business declined 13% in Greater China while growing only 5% in North America; the stock has fallen 76% over five years.
- New additions Dell Technologies, Palo Alto Networks, Arista Networks, and SanDisk reflect AI infrastructure demand, with Dell booking $60.9 billion in AI server orders in a single quarter and SanDisk's data center revenue growing 437%.
- The fund's transformation suggests the 'blue-chip' label no longer accurately describes OEF, which has quietly become a slightly diluted cousin of Invesco QQQ Trust concentrated in technology.
- For investors seeking broad exposure, the Vanguard S&P 500 ETF offers a cheaper option at four times lower fees than OEF, while those desiring deeper tech conviction might prefer Invesco QQQ Trust.
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Along the same path they are also listed as Honeywell Aerospace, Simon Property Group and Colgate-Palmolive. Dell, Palo Alto Networks, Arista Networks and SanDisk enter.
The sports giant has suffered such a blatant price hit in recent years that the company has lost over 80 percent of its value since its peak in 2021.
Nike has been removed from the S&P 100 for the first time in 18 years. This decision was decisively influenced by a 79% drop in its stock price over the past three years, as well as declines in revenue and net profit. In particular, Nike's corporate value has been significantly damaged as its stubborn DTC distribution strategy aided the growth of emerging brands, compounded by intensifying competition in the Chinese market.
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