Business
Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
There’re a handful of ASX stocks including the Afterpay Ltd (ASX: APT) share price that could see buying interest next week.
This is when Standard’s & Poor (S&P) announces the changes to key stock benchmarks, including the S&P/ASX 200 Index (Index:^AXJO).
ASX investors should care. A number of studies have shown that new ASX entrants to stock indices tend to outperform in the weeks before and the months after their inclusion.
The opposite happens to ASX stocks that get bumped from these indices.
Rise of passive investments
One reason for this is the growth of index investing. Investors have been increasingly buying into exchange traded funds (ETFs) and other passive investing strategies that hug an index.
Their popularity is…
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