Village Farms (TSX: VFF) (NASDAQ: VFF) this morning announced that it has received notification that it will be added to the S&P/TSX Composite Index. The addition is set to occur before the opening of trading on March 22, 2021.
More specifically, the firm will be added to the Consumer Staples sector of the index. The addition to Canada’s headline index is notable for the company, with the company now to be listed alongside the largest and most liquid firms on the TSX. The index also serves as the basis for multiple sub-indices.
In layman terms, the appeal of being included in such an index is that these indexes are the basis for multiple index funds and exchange traded funds. The theory is that inclusion is to widen a firms investor base to include further institutional sources.
Village Farms last traded at $20.84 on the TSX.
Information for this briefing was found via Sedar and Village Farms International. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
