This filing announces that Five9 will replace Two Harbors Investment in the S&P SmallCap 600 index. This change is effective prior to the opening of trading on Monday, August 3, and will lead to passive fund flows for both companies.
S&P Dow Jones Indices announced that Five9 (FIVN) will replace Two Harbors Investment Corp. (TWO) in the S&P SmallCap 600 index. This change is due to Two Harbors Investment Corp. no longer being representative of the small-cap market segment. The inclusion of Five9 will likely lead to increased demand for its shares from passive funds tracking the S&P SmallCap 600, providing a short-term positive catalyst. Conversely, Two Harbors Investment Corp. will experience selling pressure from these same funds, creating a short-term negative impact. Long-term implications are generally limited to the initial rebalancing period, as the fundamental value of the companies remains unchanged.