The mystery is over: The company leaving the S&P 500 index to make room for Silicon Valley juggernaut Tesla Inc. is Apartment Investment and Management Co.
Tesla TSLA, -2.72% is set to join the S&P 500 SPX, -0.13%, the broader U.S. equity benchmark, in a little over a week on Dec. 21, at which point Apartment Investment and Management AIV, -0.49%, a real estate investment trust, slides to the S&P 400 Mid Cap index MID, +0.17%, index manager S&P Dow Jones Indices said late Friday.
Apartment Income REIT Corp., which Apartment Investment and Management is spinning off, will replace coffee and doughnut chain Dunkin’ Brands Group Inc. DNKN, -0.03% in the S&P Mid Cap 400.
The spinoff is expected to be completed on Monday, and past that Apartment Investment and Management “will no longer be representative of the S&P Composite 1500 indices market cap ranges,” the index manager said.
Arby’s owner Inspire Brands Inc. is acquiring Dunkin’ Brands an offer expected to expire on or about Tuesday.
S&P said that Tesla would be joining the S&P 500 last month. The move puts Tesla automatically in the portfolios of countless index-tracking funds, cascading down to managed funds that will have to rebalance its portfolios.