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Etsy’s Removal from S&P 500: Key Facts
On September 2020, Etsy (NASDAQ: ETSY) was included in the S&P 500, but was removed four years later due to it no longer being representative of large U.S. companies. At the time of its removal, the stock was down approximately 80% from its peak in late 2021 and currently stands 76% lower than its all-time high. The company has reduced its shares outstanding by 21% over the past three years.
According to a report by Rob Arnott and Forrest Henslee, stocks that are removed from the S&P 500 often underperform initially but tend to outperform the market by several percentage points over a five-year period. Etsy has seen a drop of nearly 5% in active buyers to 87 million in Q2 2025, from 96 million at the end of 2021. However, Etsy’s recent integration with ChatGPT may represent a potential growth opportunity.
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