Investors often find it embarrassing when their stocks are tossed from an important index. That was a major factor in the sell-off of Hawaiian Holdings shares on Monday. The airline's price fell like a big plane coming in fast for a landing, tumbling by nearly 9% on a daily basis when the S&P 500 index actually traded flat.
S&P Dow Jones Indices made several changes last week to four of its lineups, which started to kick in before the market opened today.
The company had a solid run on the index. In May 2015, it was tapped to be a part, displacing the regional lender now known as Bank OZK when the latter was bumped to the S&P MidCap 400 index.
Hawaii Holdings hasn't made any official statement about its departure from the SmallCap 600. While the move shouldn't affect its fundamentals in any way, it is a psychological blow and will push it off the radar of the many index funds that target such listings for their portfolios.