Zip Co Ltd (ASX: ZIP) shares officially rejoined the S&P/ASX 200 Index (ASX: XJO) today.
The ASX buy now, pay later (BNPL) stock lost its spot among the top 200 largest listed companies by market cap after its share price collapsed by more than 95% over 2021 and 2022.
But things have taken a marked turn for the better of late.
Over the past 12 months, Zip shares have soared an eye-watering 278%. That's come as the company's shift to new management and away from growth at all costs to its new, more sustainable, profitable business model has caught investors' attention.
This has also seen Zip's market cap grow to the current $1.97 billion.
And on 12 July, shareholders learned that Zip would return to the ASX 200, commencing today.
S&P Dow Jones Indices revealed Zip would replace Altium Limited (ASX: ALU) in the benchmark index today, following Altium's acquisition by Renesas Electronics Corporation.
Longer term, this should offer some added support for Zip, as many fund managers who are restricted to investing in only the larger end of the market can now add the company to their holdings.
Index tracking funds intended to mirror the ASX 200 will also need to buy Zip stock to properly track the benchmark performance.
But Zip shares aren't enjoying any boost from their reclassification just yet, with the ASX 200 BNPL stock down 2.1% at $1.66 a share.
The ASX 200 is down 0.7% at this same time.
