The 18-year S&P 100 inclusion will come to an end! Nike (NKE.US) urgently clarifies: It remains an S&P 500 constituent.

According to information from Zhihu Finance APP, Nike (NKE.US) is about to be removed from the S&P 100 Index, ending its nearly 18-year history as a component stock. In response to some market concerns triggered by the news, Nike's investor relations team emphasized that this adjustment only involves the S&P 100 Index; Nike still remains a component of the S&P 500 Index, and this will not affect the company's business, strategy, operations, or its listing status.

According to the previously announced quarterly adjustment results from S&P Dow Jones Indices, Nike will officially be removed from the S&P 100 Index on September 21, ending its tenure as a component stock that began at the end of 2008, nearly 18 years ago. Alongside Nike, Honeywell Aerospace (HONA.US), Simon Property Group (SPG.US), and Colgate (CL.US) will also be removed. Dell Technologies (DELL.US), Palo Alto Networks (PANW.US), Arista Networks (ANET.US), and SanDisk (SNDK.US) will replace these four companies in the S&P 100 Index.

Nike particularly emphasized that the company still remains a component of the S&P 500 Index, and that this index adjustment will not affect its business, strategy, operations, or public listing status. Nike declined further comment on related reports.

Nike’s removal from the S&P 100 Index is closely related to the company’s sustained decline in share price and market capitalization in recent years. So far, Nike’s share price has fallen by more than 40% this year, moving toward its fifth consecutive annual decline. The company’s current market capitalization is about $55 billion, which is more than 80% lower than its all-time high of about $281 billion reached in November 2021.

In contrast, both the S&P 100 Index and the S&P 500 Index have risen this year and are on track to record a fourth consecutive annual gain. This has further widened the performance gap between Nike and the broader group of major U.S. blue chip stocks.

Although leaving the S&P 100 Index itself will not change Nike’s core business, index adjustments are usually closely watched by investors, since passive funds tracking the relevant index must accordingly adjust their holdings, which may bring some share buying or selling pressure before and after the adjustment takes effect.

Data show that the iShares S&P 100 ETF, which tracks the S&P 100 Index, currently manages around $20 billion in assets, of which about $19 million are invested in Nike stock. Therefore, after Nike’s removal, this fund and other passive funds tracking the S&P 100 Index may need to sell their related holdings.

However, compared to the scale of funds tracking the S&P 500 Index, this potential selling pressure is relatively limited. The Vanguard S&P 500 ETF, which tracks the S&P 500 Index, manages more than $1 trillion in assets and currently holds over $700 million in Nike stock. In addition, a similarly sized State Street S&P 500 Index fund holds about $560 million in Nike stock, while the iShares Core S&P 500 ETF holds about $575 million.

Because Nike will remain in the S&P 500 Index, these large S&P 500 passive funds will not be forced to sell Nike stock due to this adjustment in S&P 100 components.