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 March 17, 2021. The new thresholds are:

• 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

These guidelines are reviewed quarterly to reflect market conditions. Companies must also meet a float-adjusted market capitalization requirement equal to at least 50% of the respective index's minimum threshold.

Positive

• Updated market cap thresholds may attract more robust companies to indices, improving overall market strength.

Negative

• Higher eligibility thresholds for the S&P 500 could exclude smaller companies, limiting opportunities for investors seeking growth in emerging firms.

NEW YORK, March 17, 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 March 17, 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$ 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	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

In consideration of overall market conditions, the Index Committee believes a minimum threshold of $11.8 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. 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