DoorDash Inc (NASDAQ:DASH) shares are trading higher Monday amid the company joining the S&P 500.
What To Know: After the market close on Friday, S&P Dow Jones Indices announced that DoorDash, TKO Group Holdings Inc (NYSE:TKO), Williams-Sonoma Inc (NYSE:WSM) and Expand Energy Corp (NASDAQ:EXE) will join the S&P 500. The changes went into effect before the market open on Monday.
DoorDash shares jumped as much as 7.5% on the news. The four companies will replace Borgwarner Inc (NYSE:BWA), Teleflex Inc (NYSE:TFX), Celanese Corp (NYSE:CE) and FMC Corp (NYSE:FMC) in the index.
When companies are added to major indices, they often see an increase in share prices as index funds that track the S&P 500 buy shares of the newly added companies in order to stay aligned with the overall index.
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How To Buy DASH Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in DoorDash’s case, it’s in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
DASH Price Action: DoorDash shares were up 3.58% at $184.45 at the time of publication Monday, according to Benzinga Pro.
Photo: Shutterstock.
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