Veeva Systems Inc. (NYSE:VEEV) is poised to join the S&P 500 Index, a change announced Thursday that puts the life sciences software provider into one of the market’s most closely tracked benchmarks.
According to a release by S&P Global, Veeva will enter the index before trading begins on May 7, replacing Coterra Energy Inc. (NYSE:CTRA), which is being bought by Devon Energy Corp. (NYSE:DVN) in a deal expected to close soon.
Expected Boost From Passive Flows
Veeva’s addition is likely to drive up demand for its shares, as index funds and exchange-traded funds (ETFs) tracking the S&P 500 adjust their holdings. Such inclusions typically result in short-term buying pressure, driven by passive investment inflows.
Some of the most popular ETFs, like SPDR S&P 500 ETF Trust (NYSE:SPY), iShares Core S&P 500 ETF (NYSE:
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