Vertiv, Lumentum, Coherent and EchoStar Added to SandP 500 Index

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•  07 Mar 2026
 

Vertiv $VRT, Lumentum $LITE, Coherent $COHR, and EchoStar $SATS will be added to the S&P 500 index before the market opens March 23 as part of the quarterly S&P 500 rebalance. The four companies will replace Match Group MTCH, Molina Healthcare MOH, Lamb Weston LW, and Packaging Corporation of America PKG. The change reflects a shift in market leadership toward AI infrastructure, photonics, and data center connectivity companies.

The S&P 500 quarterly index update reflects criteria such as a minimum market capitalization of $22.7 billion, profitability, and liquidity. In practice, the rebalance also captures shifts in sector leadership. S&P 500 index inclusion typically triggers passive fund inflows and ETF rebalancing, as funds tracking the benchmark represent roughly $24 trillion in assets. When four companies change simultaneously, S&P 500 index inclusion flows can drive billions of dollars in forced buying and selling.

Some of that positioning occurs ahead of the rebalance, but S&P 500 rebalance volatility often persists into the implementation window as index funds adjust portfolios.

The companies entering the index posted strong gains during the AI infrastructure and data center build-out. Lumentum LITE surged more than 800% over the past year, driven by demand for optical components used in AI data centers. Vertiv delivered triple-digit gains as a supplier of power and cooling systems for hyperscale cloud facilities.

Coherent operates in photonics, enabling high-speed optical communication between data center servers. EchoStar focuses on satellite services and wireless networks and also holds an equity stake in SpaceX.

The common thread is direct exposure to the AI infrastructure build-out supporting large-scale data centers. Data centers require increasing amounts of electricity, cooling capacity, and optical connectivity to move data at scale. Companies such as NVDA and AMZN are investing billions in these systems, creating large order pipelines across the infrastructure stack.

Meanwhile, the companies leaving the index have faced sustained pressure. Molina Healthcare lost roughly 55% over the past year amid healthcare sector headwinds. Match Group declined as growth slowed in the online dating market. Lamb Weston and Packaging Corporation of America weakened alongside softness in food and packaging demand. Removal from the S&P 500 index often triggers passive fund outflows, which can amplify short-term selling pressure.

The latest change further shifts the S&P 500 index composition toward digital and AI infrastructure companies. In the December rebalance, companies such as CRH and CVNA entered the index. The current update places greater emphasis on infrastructure providers supporting AI deployment, particularly photonics and connectivity.

Semiconductors alone are not sufficient without the systems that power and connect them. Vertiv is benefiting from rising demand for energy solutions in data centers that now consume power at industrial scale. EchoStar adds the wireless layer through 5G networks and satellite communications infrastructure.

What to watch next is price action into the March 23 S&P 500 rebalance implementation date. Index-tracking funds will need to accumulate VRT LITE COHR and SATS while unwinding MTCH MOH LW PKG positions. Traders will monitor volume spikes, index arbitrage activity, and post-inclusion momentum following S&P 500 index entry once passive flows are completed.

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