Interactive Brokers Replaces Walgreens in S&P 500 as $260M Trading Volume Ranks 340th

On August 25, 2025, Interactive Brokers (IBKR) closed with a 0.58% rise, trading volume of $260 million ranked it 340th among U.S. stocks. The firm announced it will replace Walgreens Boots Alliance in the S&P 500 index effective August 28, as Sycamore Partners finalizes its acquisition of the retail pharmacy giant. This index addition follows a year of strong performance, with the stock up 42% year-to-date and doubling over the past 12 months.

S&P Dow Jones Indices confirmed the reshuffle, removing Walgreens Boots Alliance (WBA) from the S&P 500 while simultaneously shifting Interactive Brokers to the S&P MidCap 400. The move reflects broader market realignments as index providers adjust to sector dynamics. Walgreens' pending privatization has created a void in the S&P 500's consumer staples sector, which Interactive Brokers—classified under financials—will now fill.

Index inclusion typically boosts liquidity and institutional demand for listed securities. While Interactive Brokers' post-announcement after-hours surge of nearly 5% was notable, its inclusion in the S&P 500 is expected to enhance its visibility as a low-cost brokerage platform. The company's automated trading infrastructure aligns with growing demand for commission-free services, contrasting with Walgreens' retail model facing structural challenges in the healthcare sector.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The CAGR was 6.98%, with a maximum drawdown of 15.46% during the backtest period. The strategy demonstrated steady growth over time, making it a robust choice for investors seeking consistent returns. However, the significant drawdown in mid-2023 highlights the importance of risk management in high-volume trading strategies.