Targa Resources Corp (TRGP) joined the S&P 500 prior to the opening of trading on Wednesday.
The Houston, TX-headquartered midstream energy infrastructure corporation moved up from the S&P MidCap 400 to replace Nielsen Holdings plc (NLSN). Nielsen was acquired by a group of private-equity investors led by Elliot Management Corp and Brookfield Asset Management in a deal that closed on October 11.
S&P SmallCap 600 constituent Lantheus Holdings Inc. (LNTH) will replace Targa Resources in the S&P MidCap 400, and Payoneer Global Inc. (PAYO) will replace Lantheus Holdings in the S&P SmallCap 600 effective before the opening of trading on Wednesday, October 12, according to a statement from S&P Dow Jones Indices.
According to Bloomberg, energy stocks comprise 5.2% of the S&P 500 Index as of October 12. Energy was the best-performing sector in the S&P 500 in 2021 and remained the top performer year to date through the third quarter.
With the addition of Targa, there are four midstream companies included in the S&P 500 as of October 12: Kinder Morgan Inc (KMI), ONEOK (OKE), Williams Companies (WMB), and Targa.
Investors who want exposure to midstream firms structured as C-corps can’t get it in an MLP-only product. The Alerian Midstream Energy Select Index (AMEI), a composite of North American energy infrastructure companies, comprises MLPs and C-corps. Targa (weighted at 4.9% as of October 7) and the three other midstream names included in the S&P 500 are constituents in AMEI.
AMEI can be accessed with the Alerian Energy Infrastructure ETF (ENFR ) and the ALPS Alerian Energy Infrastructure Portfolio (ALEFX), which deliver exposure in ETF and VIT wrappers.
For more news, information, and strategy, visit the Energy Infrastructure Channel.
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