# Reddit will join the S&P 500 on Aug. 18, replacing AvalonBay

> Source: <https://mlq.ai/news/reddit-will-join-the-sp-500-on-aug-18-replacing-avalonbay/>
> Published: 2026-08-14 11:04:34.940733+00:00

# Reddit will join the S&P 500 on Aug. 18, replacing AvalonBay

- Reddit will replace AvalonBay Communities in the S&P 500 before the market opens on Aug. 18.
[[1]](https://www.marketwatch.com/story/reddit-is-joining-the-s-p-500-after-months-of-speculation-analysts-have-these-concerns-21f81f77?mod=mw_rss_topstories) - RDDT shares rose 12.6% in Thursday’s extended session after the announcement.
[[1]](https://www.marketwatch.com/story/reddit-is-joining-the-s-p-500-after-months-of-speculation-analysts-have-these-concerns-21f81f77?mod=mw_rss_topstories) - Passive funds that track the benchmark will need to add Reddit, but analysts remain focused on Google traffic and the durability of Reddit’s data-licensing revenue.
[[2]](https://www.spglobal.com/spdji/en/indices/equity/sp-500/)[[3]](https://www.techrepublic.com/article/news-reddit-google-ai-partnership-ai-search-publishers-2026/)

Reddit will join the S&P 500 before trading begins Tuesday, Aug. 18, replacing AvalonBay Communities after S&P Dow Jones Indices announced the change Thursday. Reddit shares rose 12.6% in extended trading on Aug. 13. [[1]](https://www.marketwatch.com/story/reddit-is-joining-the-s-p-500-after-months-of-speculation-analysts-have-these-concerns-21f81f77?mod=mw_rss_topstories)

AvalonBay is being removed as it is acquired by S&P 500 constituent Equity Residential. The combined residential real-estate company is expected to remain in the benchmark under the name Vivmark Residential once the transaction closes. [[4]](https://www.reddit.com/r/wallstreetbets/comments/1vnnz4o/reddit_added_to_the_sp500/)

## A trading catalyst, with operating risks still in view

The addition should create automatic demand from mutual funds and exchange-traded funds that track the S&P 500, because those portfolios adjust their holdings to reflect index changes. The size of that buying will depend on Reddit’s eventual index weight and the funds’ tracking methods. [[2]](https://www.spglobal.com/spdji/en/indices/equity/sp-500/)

Analysts’ concerns center on Reddit’s reliance on advertising and traffic from Google search, as AI-generated search answers can reduce the number of users sent to outside websites. Reports have also raised uncertainty around Reddit’s data-licensing relationship with Google, which has been viewed as an important part of the company’s AI monetization story. [[3]](https://www.techrepublic.com/article/news-reddit-google-ai-partnership-ai-search-publishers-2026/)

## Companies mentioned

## Further sources

[[1] MarketWatch reported that S&P Dow Jones Indices will add Reddit to the S&P 500 … ↗](https://www.marketwatch.com/story/reddit-is-joining-the-s-p-500-after-months-of-speculation-analysts-have-these-concerns-21f81f77?mod=mw_rss_topstories)

[[2] S&P Dow Jones Indices describes the S&P 500 as a benchmark index whose constitu… ↗](https://www.spglobal.com/spdji/en/indices/equity/sp-500/)

[[3] Recent reporting described concerns over Reddit’s Google search traffic and the… ↗](https://www.techrepublic.com/article/news-reddit-google-ai-partnership-ai-search-publishers-2026/)

[[4] The reported S&P announcement said Reddit would replace AvalonBay because Equit… ↗](https://www.reddit.com/r/wallstreetbets/comments/1vnnz4o/reddit_added_to_the_sp500/)

The stories that matter, in one email. Free — unsubscribe anytime.