Block's S&P 500 Debut to Impact ETFs SPY, VOO, and Fintech ETFs ARKF, FINX, BLOK

Jack Dorsey's Block Inc has entered the S&P 500 index, replacing Hess Corp. This addition will impact index-tracking ETFs such as SPDR S&P 500 ETF TRUST (SPY) and Vanguard S&P 500 ETF (VOO), which will now include Block shares. The inclusion of Block in the S&P 500 could lead to increased demand for its shares, potentially supporting its price. Additionally, thematic fintech ETFs such as ARKF, FINX, and BLOK may also benefit from the upgrade.

Block Inc (NYSE:XYZ), formerly known as Square, has been added to the S&P 500 index, replacing Hess Corp (NYSE:HES) [1]. The change, effective prior to the opening of trading on July 23, 2025, comes after Chevron Corp (NYSE:CVX) acquired Hess on July 18 [1]. This inclusion marks a significant milestone for Block, which has grown from a small payment processor to a diversified financial services provider [2].

Block's addition to the S&P 500 will have implications for various index-tracking exchange-traded funds (ETFs) such as SPDR S&P 500 ETF TRUST (SPY) and Vanguard S&P 500 ETF (VOO), which will now include Block shares. This inclusion could lead to increased demand for Block's shares, potentially supporting its price [1].

Thematic fintech ETFs such as ARKF, FINX, and BLOK may also benefit from Block's upgrade. These funds focus on innovative technology companies and could see enhanced returns as a result of Block's inclusion in the S&P 500 [2].

Block's market capitalization of $44.79 billion exceeds the $20.5 billion threshold for S&P 500 eligibility [2]. The committee's decision to include Block was influenced by factors such as governance, liquidity, and market representation, validating Block's growth trajectory and enhancing its visibility and credibility in the market [2].

Block's shares have surged 24.7% in a month, outperforming its industry's rise of 5.7% [2]. The company's forward 12-month P/E ratio of 26.51X is cheaper than its competitors, including Reddit, Inc. (RDDT) [2]. The Zacks Consensus Estimate for Block's 2025 and 2026 earnings implies growth of 3.4% and 9.4%, respectively [2].

Block's inclusion in the S&P 500 is a testament to the company's growth and innovation in the fintech sector. The company's dual growth engines, Square and Cash App, offer comprehensive solutions spanning payments, commerce, banking, and lending, positioning Block as a one-stop provider for both consumers and businesses [2].

References:
[1] https://www.investing.com/news/stock-market-news/block-stock-surges-after-sp-500-inclusion-announcement-93CH-4142637
[2] https://www.nasdaq.com/articles/block-stock-rises-247-month-what-means-investors