Robinhood’s entry and Caesars’ exit signal changes in S&P 500 lineup

The upcoming rebalancing of the S&P 500 will see Caesars Entertainment removed from the benchmark index and shifted to the S&P SmallCap 600, while Robinhood Markets Inc. will be added, bringing further exposure to crypto-related businesses.

The changes will take effect at the start of trading on September 22, S&P Dow Jones Indices said.

Caesars, based in Reno, operates eight resorts on the Las Vegas Strip. The company’s market capitalization stands between $5 billion and $5.5 billion, below the S&P 500’s minimum threshold of $22.7 billion. Caesars is one of three firms leaving the index this month, alongside Enphase Energy Inc. and MarketAxess Holdings Inc.

The casino operator’s shares have fallen nearly 20% since January. At Monday’s close of $26.33, Caesars was trading 42% lower than its 52-week high of $45.55 recorded in October 2024. A $1,000 investment in Caesars stock in 2020 would now be valued at less than $520. 

Robinhood will join Coinbase, which was added to the S&P 500 in May, as one of two companies connected to the crypto sector currently represented in the index. Both firms serve as trading gateways for retail investors interested in digital assets.

“This movement expands the index’s exposure and connection to the digital asset economy,” Edwin Mata, Co-Founder and CEO of tokenization platform Brickken, told Cointelegraph. “While the S&P still lacks direct holdings in cryptocurrencies, Robinhood’s role as a retail crypto gateway means the index is indirectly capturing part of the sector’s growth value and liquidity.”

Agne Linge, Head of Growth at decentralized on-chain bank WeFi, noted: “The addition of Robinhood to the S&P 500 shows that crypto-related businesses are now considered strong pillars of America’s market.”

Robinhood has a beta value of 2.36 compared with Coinbase’s 2.89, both above the market average. “The inclusion of both of these stocks that have exposure to crypto increases some risk — a marginal risk — to the S&P 500,” Linge said.

The change will require index funds and exchange-traded funds tracking the S&P 500 to include Robinhood shares.

CNBC’s Jim Cramer described Robinhood as a “juggernaut” that altered the retail brokerage industry and noted its expansion into retirement accounts and credit cards in addition to stocks, options, and crypto.