Indexes play a crucial role in the world of investing, providing benchmarks for measuring market performance and serving as the foundation for numerous investment products. As the financial landscape evolves, index providers must regularly reconstitute their indexes to reflect changes in the market. Additionally, delistings, when stocks are removed from an index, can have a significant impact on its performance. In this article, we will explore the process of index reconstitution and delve into how delistings can influence the performance of an index. Index Reconstitution Index reconstitution refers to the periodic review and adjustment of the constituents of an index. The specific methodology and frequency of reconstitution vary among index providers, but the general process typically involves the following steps: Selection Criteria: Index providers establish a set of criteria that eligible securities must meet to be considered for inclusion in the index. These criteria often include factors such as market capitalization, liquidity, sector representation, and financial stability. Companies that meet the predefined requirements are candidates for inclusion. Evaluation and Ranking: Once the pool of eligible securities is determined, they are evaluated and ranked based on