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Implications of stocks in or out of ASX100, ASX200 & ASX300

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Question asked 24/05/2025

Implications of stocks in or out of ASX100, ASX200 & ASX300

Thanks for your continued great wisdom. Can you tell me what impact is there on a stock which has been included or removed in/from the ASX200, ASX300, or the All ordinaries etc. Regards, David

Answer

Hi David,

When stocks go in and out of various indices it impacts which ETF’s and Institutions will &/0r can hold them. Hence when a stock moves from the ASX300 to the ASX200 in theory there are more potential buyers. However, say a company moves from the ASX200 into the ASX100, a lot of the smaller company managers can no longer buy it, as they are generally ex-100 managers, which can actually have a negative impact.

The mechanism for qualifying between various indices is transparent and there is a lot of analysis done on this ahead of time, so we’d argue that there is not a lot of value that can be added, in the short term at least, by focussing on index inclusions/exclusions.

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