S&P Dow Jones Indices Announces Update to S&P Composite 1500 Market Cap Guidelines

Rhea-AI Summary

S&P Dow Jones Indices is updating its market capitalization eligibility criteria for new additions to the S&P Composite 1500 Indices, effective December 8, 2020. The new criteria specify:

• For the S&P 500: minimum market cap of $9.8 billion.
• For the S&P MidCap 400: market cap between $3.2 billion and $9.8 billion.
• For the S&P SmallCap 600: market cap between $700 million and $3.2 billion.

This update reflects overall market conditions and is subject to quarterly review.

Positive

• None.

Negative

• Increased minimum market cap for S&P 500 from $8.2 billion to $9.8 billion may limit new company additions.

NEW YORK, Dec. 7, 2020 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") is updating the market capitalization eligibility criteria for new additions to the S&P Composite 1500 Indices. Effective December 8, 2020, the size ranges will be updated as follows.

Previous Market Capitalization Eligibility Criteria	New Market Capitalization Eligibility Criteria
Unadjusted company market capitalization of: ·  US$ 8.2 billion or more for the S&P 500 ·  US$ 2.4 billion to US$ 8.2 billion for the S&P MidCap 400 ·  US$ 600 million to US$ 2.4 billion for the S&P SmallCap 600	Unadjusted company market capitalization of: ·  US$ 9.8 billion or more for the S&P 500 ·  US$ 3.2 billion to US$ 9.8 billion for the S&P MidCap 400 ·  US$ 700 million to US$ 3.2 billion for the S&P SmallCap 600

In consideration of overall market conditions, the Index Committee believes a minimum threshold of $9.8 billion for the S&P 500 is appropriate. These ranges are reviewed quarterly and updated as needed to assure consistency with market conditions. A company meeting the unadjusted company market capitalization criteria is also required to have a security level float-adjusted market capitalization that is at least 50% of the respective index's unadjusted company level minimum market capitalization threshold.

As a reminder, the market capitalization eligibility criteria is for additions. The addition criteria are for addition to an index, not for continued membership. As a result, an index constituent that appears to violate criteria for addition to that index is not deleted unless ongoing conditions warrant an index change.

A history of market cap ranges dating back to 2007 can be found in Appendix A of the U.S. Indices methodology. Please visit our website www.spdji.com for further details.

For more information about S&P Dow Jones Indices, please visit www.spdji.com

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spdji.com.

FOR MORE INFORMATION:

S&P Dow Jones Indices
index_services@spglobal.com

Media Inquiries
spdji.comms@spglobal.com

View original content:http://www.prnewswire.com/news-releases/sp-dow-jones-indices-announces-update-to-sp-composite-1500-market-cap-guidelines-301187806.html

SOURCE S&P Dow Jones Indices

FAQ

What are the new market cap criteria for the S&P 500 effective December 8, 2020?

The new minimum market cap for the S&P 500 is $9.8 billion.

How does the market cap eligibility change for the S&P MidCap 400?

The new market cap range for the S&P MidCap 400 is $3.2 billion to $9.8 billion.

What is the updated market cap range for the S&P SmallCap 600?

The range for the S&P SmallCap 600 is now $700 million to $3.2 billion.

Why are the market cap eligibility criteria being updated?

The criteria are updated to reflect overall market conditions.

How often will the market cap ranges be reviewed?

The market cap ranges will be reviewed quarterly.