S&P 500 turnover accelerating

Why Hewlett-Packard is off the Dow Jones Index | MIT Technology Review: " . . . What Foster found is that the rate at which companies get bumped off the S&P 500 has been accelerating. Back in 1958, a company could expect to stay on the list for 61 years. These days, the average is just 18 years. Companies can fall off the S&P 500 when they get too small, or get acquired. No one really knows why the rate of turnover is speeding up, but technological disruption could be one big reason. Since 2002, Google, Amazon, and Netflix have joined the S&P 500, while Kodak, the New York Times, Palm and Compaq have all been forced off, essentially by changing technology. Today’s S&P 500 includes many familiar firms, like Apple, AT&T, Corning, Ford, Intel, and Yahoo (and Hewlett-Packard, too). Yet at today’s fast rate of turnover, three out of four names on the list will be banished into obscurity within the next fifteen years. . . ."

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