Ares Management Corp. (ARES) has been officially added to the S&P 500 Index, replacing Kellanova (KAL), as part of the annual index rebalancing. The announcement triggered an immediate 7.3% surge in ARES stock, reflecting strong demand from passive investment vehicles tracking the benchmark.
- Ares Management (ARES) was selected over Strategy (STRG) to replace Kellanova (KAL) in the S&P 500.
- ARES has a market capitalization of $48.2 billion and average daily trading volume of $210 million.
- Stock surged 7.3% in after-hours trading, with volume exceeding 18 million shares.
- Index inclusion triggers rebalancing flows from passive funds tracking the S&P 500.
- The change reflects sector realignment toward financial services and growth assets.
- Major ETFs like SPY and IVV will adjust their holdings to reflect ARES’s new weighting.
Ares Management Corp. (ARES) has officially joined the S&P 500 Index, replacing Kellanova (KAL) in a move announced by S&P Dow Jones Indices. The inclusion, effective as of the close of trading on December 8, 2025, marks a pivotal moment for the alternative asset manager, which has rapidly expanded its footprint in private credit and real assets over the past five years. The addition of ARES reflects a strategic shift in the index’s composition, with the firm selected over Strategy (STRG) based on criteria including market capitalization, liquidity, and sector representation. ARES's market cap of approximately $48.2 billion at the time of the announcement met the minimum threshold for inclusion, while its average daily trading volume of $210 million demonstrated sufficient liquidity to support index-tracking funds. The immediate market reaction was pronounced: ARES stock rose 7.3% in after-hours trading following the announcement, with volume spiking to over 18 million shares—nearly double its 30-day average. This surge is expected to persist as institutional investors, including ETF providers and index funds, initiate or increase positions to align with the S&P 500’s new weighting. The substitution of Kellanova—the consumer goods company formerly known as Kellogg’s—signals a broader trend toward financial services and growth-oriented sectors within the S&P 500. ARES’s integration into the index will also influence the composition of major ETFs such as the SPDR S&P 500 ETF (SPY) and the iShares Core S&P 500 ETF (IVV), which collectively hold over $600 billion in assets.