MW This financial company was just added to the S&P 500, and its stock is surging
By Emily Bary
Ares is getting the nod over Strategy as the index looks to replace Kellanova
Michael Arougheti is the CEO of Ares Management, which will join the S&P 500 this week.
Fresh of the announcement of three forthcoming S&P 500 entrants, the index committee is back with one more.
Ares Management $(ARES)$ is set to join the benchmark index before the opening bell on Dec. 11, according to S&P Dow Jones Indices on Monday. The move comes as Mars Inc. is due to close on its $36 billion deal for Kellanova $(K)$, the maker of Pringles and Pop-Tarts.
The announcement means that Ares Management, an asset manager, will become part of the S&P 500 SPX ahead of the three companies announced after Friday's close. Carvana (CVNA), CRH $(CRH)$ and Comfort Systems USA $(FIX)$ officially join the index before the open on Dec. 22, as part of the typical quarterly rebalance.
See more: Carvana gets a spot in the S&P 500 ahead of these tech stocks
Ares was one of the largest companies eligible for inclusion in the S&P 500, according to Stephens analyst Melissa Roberts' recent screen of contenders. The S&P 500 isn't simply a list of the largest U.S. companies, and the index committee has latitude when choosing new members, provided the companies meet criteria related to profitability, market capitalization and more.
The financial-services sector was the most underweight in the index relative to its broad-market weighting, according to Roberts' analysis.
Shares of Ares surged 7% in Monday's after-hours trading. A place in the S&P 500 is a form of street cred for components, plus it means that funds tracking the benchmark index will have to buy up shares.
Ares made the cut over Marvell Technology $(MRVL)$, the chip company whose $78 billion market cap made it the largest candidate for inclusion. Also missing out this round were Vertiv Holdings $(VRT)$, a data-center infrastructure company, and Strategy (MSTR), the cryptocurrency holding company, though there has been debate on Wall Street about whether Strategy is actually eligible since it doesn't have a significant operating business.
-Emily Bary
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December 08, 2025 18:04 ET (23:04 GMT)
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