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

Rhea-AI Summary

S&P Dow Jones Indices announced updates to the market capitalization eligibility criteria for the S&P Composite 1500 Indices, effective June 3, 2021. The new criteria set the minimum market cap for the S&P 500 at $13.1 billion, up from $11.8 billion. The S&P MidCap 400 now requires a market cap between $3.6 billion and $13.1 billion, while the S&P SmallCap 600's range is $850 million to $3.6 billion. These changes aim to align with current market conditions and are subject to quarterly reviews. For further details, visit www.spdji.com.

Positive

• Updated market cap thresholds may enhance index quality and stability.

Negative

• Increased minimum market cap for the S&P 500 may limit potential new additions, impacting market diversity.

NEW YORK, June 3, 2021 /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 June 3, 2021, the size ranges will be updated as follows.

Previous Market Capitalization Eligibility Criteria	New Market Capitalization Eligibility Criteria
Unadjusted company market capitalization of: · US$ 11.8 billion or more for the S&P 500 · US$ 3.3 billion to US$ 11.8 billion for the S&P MidCap 400 · US$ 750 million to US$ 3.3 billion for the S&P SmallCap 600	Unadjusted company market capitalization of: · US$ 13.1 billion or more for the S&P 500 · US$ 3.6 billion to US$ 13.1 billion for the S&P MidCap 400 · US$ 850 million to US$ 3.6 billion for the S&P SmallCap 600

In consideration of overall market conditions, the Index Committee believes a minimum threshold of $13.1 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 must also 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 are 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 removed 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. The document will be updated soon to reflect the change. 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

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SOURCE S&P Dow Jones Indices

FAQ

What are the new market capitalization requirements for the S&P 500 as of June 2021?

The new minimum market cap for the S&P 500 is $13.1 billion, effective June 3, 2021.

How have the market cap criteria changed for the S&P MidCap 400?

The S&P MidCap 400 now requires a market cap between $3.6 billion and $13.1 billion.

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

The S&P SmallCap 600's new market cap range is $850 million to $3.6 billion.

Why did S&P Dow Jones Indices update their market cap eligibility criteria?

The updates reflect overall market conditions to ensure the indices remain relevant and consistent.

Where can I find more information about the updated market cap guidelines?

More information can be found on the S&P Dow Jones Indices website at www.spdji.com.