MSCI Removes Strategy (MSTR) From Its USA Index, Forcing Index Funds to Sell by Nov. 30
By Micah Zimmerman
AI summary of the source article
MSCI will remove Strategy from the MSCI USA Index as of November 30 after a new screen classified it as a non-operating issuer. The move forces index-tracking funds to sell their holdings.
Why it matters
Funds that track an MSCI index have to hold what the index holds, so they will have to sell the deleted stocks by the Nov. 30 close.
Key facts
- Strategy will be removed from the MSCI USA Index at the close of November 30, also removing it from the MSCI World and ACWI indexes.
- MSCI's new screen rules companies ineligible if operating assets are under 50% of total assets and they fail four or more financial ratios across two annual filing periods.
- Funds tracking the index must sell the deleted shares by November 30, with Strategy stating such funds hold 3.1% of its basic shares outstanding.
Source excerpt · Bitcoin Magazine
Bitcoin Magazine MSCI Removes Strategy (MSTR) From Its USA Index, Forcing Index Funds to Sell by Nov. 30 MSCI will take Strategy, Metaplanet, Yellow Cake, Skel and Upexi out of its global indexes as of the Nov. 30 close, after a new screen classified them as non-operating companies. This post MSCI Removes Strategy (MSTR) From Its USA Index, Forcing Index Funds to Sell by Nov. 30 first appeared on…