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Key Takeaways

The S&P 500 gets three new members Monday, with Palantir Technologies ( PLTR ), Dell Technologies ( DELL ) and Erie Indemnity ( ERIE ) set to join the benchmark index.

The trio will replace American Airlines Group ( AAL ), Etsy ( ETSY ), and Bio-Rad Laboratories ( BIO ). American Airlines and Bio-Rad will be part of the S&P MidCap 400 index, while Etsy will join the S&P SmallCap 600 index.

S&P Global announced the moves, part of its quarterly rebalancing, two weeks ago. It periodically shifts companies between its indexes to ensure they are accurately represented in terms of their market capitalization .

What S&P 500 Inclusion Can Mean

Companies often get a boost when their stock is added to a major index like the S&P 500, as the inclusion exposes them to a wider group of investors who could become aware of a company through an index.

The stock could also get a boost as its shares start to be included in index funds , which look to mirror the performance of a broader index by including shares of the companies included in it.

Shares of Dell closed Friday down 0.2%, while and Palantir rose 1%. Both shares have moved higher overall over the past two weeks since the announcement was made, as have shares of Erie, which fell 1% Friday.

Read the original article on Investopedia .