NEW YORK — 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 Friday, the size ranges will be updated as follows.
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Previous Market Capitalization Eligibility Criteria |
New Market Capitalization Eligibility Criteria |
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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 |
Unadjusted company market capitalization of: – US$ 14.6 billion or more for the S&P 500 – US$ 3.7 billion to US$ 14.6 billion for the S&P MidCap 400 – US$ 850 million to US$ 3.7 billion for the S&P SmallCap 600 |
In consideration of overall market conditions, the Index Committee believes a minimum threshold of $14.6 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 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.
