Counter-drone technology developer Droneshield Ltd (ASX: DRO) is one of nine ASX shares set to join the benchmark S&P/ASX 200 Index (ASX: XJO) in the next rebalance.
S&P Dow Jones Indices announced its September quarter rebalance after the market closed on Friday.
Telecommunications shares Tuas Ltd (ASX: TUA) and Superloop Ltd (ASX: SLC) have also secured places in the ASX 200 index.
Another business joining the ranks of Australia's top 200 listed companies is the asset manager, GQG Partners Ltd (ASX: GQG).
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What is an index rebalance?
Every three months, the S&P Dow Jones Indices team reviews the composition of Australia's leading indices.
Rebalances ensure our indices accurately reflect the performance of Australia's largest companies by market capitalisation.
Indices are important guides for investors. They are a way to measure the market's performance and monitor its momentum over time.
The ASX 200 is the benchmark index for the Australian share market.
However, other indices, like the S&P/ASX All Ordinaries Index (ASX: XAO) and S&P/ASX 300 Index (ASX: XKO), are also very important.
What's the significance of getting into the ASX 200?
Gaining entry into the ASX 200 gives a company a bit of extra prestige.
It's a clear signal to the market that the company is growing, and this new ASX 200 share is one to watch.
A stock has to meet market capitalisation and liquidity requirements to enter the ASX 200.
A share's inclusion in the ASX 200 can sometimes have tangible effects on its price.
One reason is that many exchange-traded funds (ETFs) and managed funds are designed to track the ASX 200.
Therefore, fund managers must adjust their holdings at each rebalance, buying ASX shares added and selling those removed.
This often leads to extra trading activity around the rebalance date, which may influence a stock's price.
Rebalances matter more than ever due to the growing number of Australians investing in ASX ETFs rather than picking individual shares.
Betashares data shows Australians invested a record $5.28 billion into ASX ETFs in July alone.
The ASX ETF industry now has a record $289.2 billion in funds under management.
ETFs are a form of passive, diversified investment that many investors perceive as lower risk.
They allow investors to buy a basket of shares in one trade for a single brokerage fee and low ongoing management fees.
9 ASX shares about to join the ASX 200
This next rebalance will become effective on 22 September.
Here are the new entrants into the ASX 200.
| ASX share | 6-month share price change |
| DroneShield Ltd (ASX: DRO) | 244% |
| IperionX Ltd (ASX: IPX) | 116% |
| Perenti Ltd (ASX: PRN) | 90% |
| Superloop Ltd (ASX: SLC) | 39% |
| Tuas Ltd (ASX: TUA) | 21% |
| Dalrymple Bay Infrastructure Ltd (ASX: DBI) | 20% |
| Greatland Resources Ltd (ASX: GGP) | (15%) |
| Ebos Group Ltd (ASX: EBO) | (19%) |
| GQG Partners Ltd (ASX: GQG) | (21%) |
