An equal-weight basket made up of companies that were booted from the S&P 500 over the past three years (for reasons other than acquisitions) is down 47% this year, almost five times more than the benchmark’s 2020 decline, according to data compiled by Bloomberg. Just five of the ousted firms have posted positive returns, while half have plunged 40% or more. Oil and gas companies including Chesapeake Energy Corp. and Transocean Ltd. are still off by 80% or more. Bed Bath & Beyond Inc. and Macy’s Inc. are down roughly 70%. “The S&P committee is going to have to decide how long they want to wait before ditching COVID-damaged companies,” said Nicholas Colas of DataTrek Research, who sees more than 30 companies teetering on the edge of removal. “The S&P 500 may be the world’s most-followed passive index, but COVID-19 and its aftermath is going to force its constructors into some very active choices.”

https://www.bloomberg.com/news/articles/2020-05-16/drastic-makeover-looms-for-world-s-most-followed-stock-index?sref=EcccZSTc