The identity of the S&P 100 components will come to an end! NIKE, Inc. Class B (NKE.US) urgently clarifies: it remains a component of the S&P 500.

NIKE, Inc. Class B (NKE.US) is about to be removed from the S&P 100 Index, ending its nearly 18-year history as a component stock. In response to market concerns raised by this news, the NIKE, Inc. Class B investor relations team emphasized that this adjustment only pertains to the S&P 100 Index, and NIKE, Inc. Class B remains a component of the S&P 500 Index, which will not affect the company's business, strategy, operations, or public listing status. According to the quarterly adjustment results previously announced by S&P Dow Jones Indices, NIKE, Inc. Class B will officially be removed from the S&P 100 Index on September 21, concluding its nearly 18-year status as a component stock since the end of 2008. Alongside NIKE, Inc. Class B, Honeywell Aerospace (HONA.US), Simon Property Group, Inc. (SPG.US), and Colgate-Palmolive (CL.US) will also be removed. Dell Technologies, Inc. Class C (DELL.US), Palo Alto Networks (PANW.US), Arista Networks (ANET.US), and SanDisk (SNDK.US) will replace the aforementioned four companies in the S&P 100 Index. NIKE, Inc. Class B particularly emphasized that the company remains a component of the S&P 500 Index, and this index adjustment will not impact the company's business, strategy, operations, or public listing status. NIKE, Inc. Class B declined to comment further on related reports. The removal of NIKE, Inc. Class B from the S&P 100 Index is closely related to the company's continuous decline in stock price and market capitalization in recent years. As of now, the stock price of NIKE, Inc. Class B has dropped more than 40% this year, moving towards a fifth consecutive annual decline. The company's current market capitalization is approximately $55 billion, having shrunk by more than 80% from its historical peak of about $281 billion in November 2021. In contrast, both the S&P 100 Index and the S&P 500 Index have maintained an upward trend this year, on track to record an annual increase for the fourth consecutive year. This further widens the gap between the performance of NIKE, Inc. Class B and that of large-cap blue-chip stocks in the U.S. Although being removed from the S&P 100 Index will not change the fundamental business of NIKE, Inc. Class B, index adjustments typically draw significant attention from investors, as passive funds tracking the relevant index need to adjust their holdings accordingly, which may create some buying and selling pressure around the time of the adjustment. Data shows that the iShares S&P 100 ETF, which tracks the S&P 100 Index, currently manages approximately $20 billion in assets, holding about $19 million in NIKE, Inc. Class B stock. Therefore, after the removal of NIKE, Inc. Class B, this fund and other passive funds tracking the S&P 100 Index may need to sell their relevant holdings. However, compared to the scale of funds tracking the S&P 500 Index, this potential selling pressure is relatively limited. The Vanguard S&P 500 ETF, which tracks the S&P 500 Index, manages over $1 trillion in assets and currently holds over $700 million in NIKE, Inc. Class B stock. Additionally, a similarly-sized State Street S&P 500 Index fund holds about $560 million in NIKE, Inc. Class B stock, while the iShares Core S&P 500 ETF holds approximately $575 million. Since NIKE, Inc. Class B remains in the S&P 500 Index, these large passive S&P 500 funds will not be forced to sell NIKE, Inc. Class B stock due to this adjustment in the S&P 100 component stocks.