The S&P 500 Composite Index (.SPX) will add Tesla Inc. (TSLA.O) on Dec. 21. The electric vehicle (EV) maker’s addition will be accompanied by the removal of Apartment Investment and Management Co (AIV.N), which is part of the Residential REITs sub-industry. Once added, Tesla will become one of the largest holdings in the S&P 500. We look at how these changes will affect expectations for the S&P 500. Exhibit 1: Tesla (TSLA.O) vs. S&P 500 (.SPX) vs. Russell 1000 (.RUI) Year-to-Date (YTD) total returns Source: Eikon from Refinitiv Despite the COVID-19 pandemic, as of the Dec. 16, 2020 close, the