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Cramer Welcomes 3 Stocks To His COVID-19 Index, Kicks Out 3 Others

Cramer Welcomes 3 Stocks To His COVID-19 Index, Kicks Out 3 Others

CNBC "Mad Money" host Jim Cramer has been managing a mock index of 100 stocks that stand to benefit financially from the coronavirus pandemic.

On Monday, Cramer replaced three names in his index meant to help investors get better exposure to the stay-at-home-economy.

What's Out: Medical supply company Baxter International Inc (NYSE: BAX) was removed from the COVID-19 index because of its high exposure to voluntary surgeries that are mostly on hold at hospitals, Cramer said.

Drug company GlaxoSmithKline plc (NYSE: GSK) is "not enticing many investors," despite working on a COVID-19 vaccine, so that stock is out, the CNBC host said.

Also getting kicked out of the index: food maker Kellogg Company (NYSE: K), as Cramer is sticking with seven other food plays instead.

What's In: "Cloud king" stock VMware, Inc. (NYSE: VMW) is welcomed to the index because it is cheap on an earnings basis and stands to benefit if spun off from Dell, Cramer said.

Another cloud stock, Fastly Inc (NYSE: FSLY), is being added to Cramer's index despite a sevenfold increase since March.

Finally, gold miner Newmont Corporation (NYSE: NEM) offers investors "more insurance against economic chaos" as the U.S. continues to deal with the health crisis and economic fallout, Cramer said.

Cramer's index was last updated in late May and has since gained 6.4% in value, beating all three major indices.

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