Ares Management Corporation (ARES) surged 12% in early trading after being officially selected to replace Kellanova (KVL) in the S&P 500 index. The change, effective December 16, 2025, marks a significant milestone for the financial firm as it gains exposure to passive investment flows tied to the benchmark.
- ARES shares rose 12% on December 9, 2025, following S&P 500 inclusion announcement
- Ares will replace Kellanova (KVL) in the S&P 500 starting December 16, 2025
- KVL’s market cap: ~$128 billion; ARES’s market cap: ~$43 billion
- Expected passive inflows into ARES: $3.2 billion over the next month
- ETFs such as SPY, IVV, and VOO will rebalance holdings accordingly
- Shift reflects growing influence of financials in the S&P 500 index
Ares Management Corporation (ARES) saw its shares rise sharply by 12% on December 9, 2025, following confirmation of its inclusion in the S&P 500. The company, a leading alternative asset manager, will replace Kellanova (KVL), the packaged foods giant, in the index as part of the annual rebalancing. The transition is set to take effect on December 16, 2025, triggering immediate market attention from institutional investors and ETF managers. The addition of ARES to the S&P 500 is a major development for the financials sector, reflecting increased recognition of alternative asset management firms within the broad market. As of the last rebalancing, KVL had a market capitalization of approximately $128 billion, while ARES currently trades with a valuation of around $43 billion. The move underscores shifting market dynamics, with growth-oriented financials gaining ground over traditional consumer staples. The index inclusion is expected to draw at least $3.2 billion in passive inflows into ARES over the following month, based on typical ETF tracking ratios and the S&P 500’s weighting methodology. Conversely, KVL will see outflows from index-tracking funds, potentially pressuring its share price in the near term. The event also impacts a range of products, including SPDR S&P 500 ETF (SPY), iShares Core S&P 500 ETF (IVV), and Vanguard S&P 500 ETF (VOO), all of which will adjust their holdings accordingly. Investors are closely watching the broader implications for sector diversification and market concentration, especially as financials gain a larger footprint in the S&P 500. The change highlights the evolving nature of the index, where sector composition reflects changing economic drivers and investor preferences.