CrowdStrike cheers for S&P 500's inclusion of cybersecurity company.

• Effective June 24, Comerica is being replaced by CrowdStrike in the S&P 500 U.S.
• Fund managers who track the benchmark often purchase the stock of companies that are added to the index, resulting in a rally in their shares.

On Monday, the cybersecurity software vendor experienced a 10% increase in shares after being announced as a new member of the S&P 500, replacing a financial firm.

CrowdStrike, a global investment firm, and a web domain seller have been added to the S&P Dow Jones Indices benchmark index, replacing and , respectively. The changes will take effect on June 24.

CrowdStrike shares are expected to experience a rally after being added to the benchmark, as fund managers regularly update their portfolios to mirror the index. Evercore analysts predict that indexers will purchase approximately 30 million shares of CrowdStrike.

On Monday, both the First Trust Nasdaq Cybersecurity ETF and the Amplify Cybersecurity ETF experienced gains, with the former increasing by 1.3% and the latter rising by 1.2%.

CrowdStrike has been profitable in the past five quarters and has a market cap of over $90 billion, which is more than double the median S&P 500 company's valuation.

Since our inception in 2011, our team, customers, and partners have demonstrated hard work, dedication, and belief, resulting in this remarkable achievement, as CEO George Kurtz stated in a LinkedIn post over the weekend.

On Monday, CrowdStrike's surge propelled the stock to a new high, resulting in a 49% increase in gains for the year, following a 143% rise in 2023.

This month, CrowdStrike announced a 33% rise in revenue compared to the previous year, reaching $921 million.

WATCH: CrowdStrike CEO George Kurtz goes one-on-one with Jim Cramer