S&P Dow Jones Indices (S&P DJI) said Friday that it has updated the market capitalisation eligibility criteria for additions to the S&P Composite 1500 Indices.
S&P Dow Jones Indices Updates S&P Composite 1500 Market Cap Guidelines
The changes, effective immediately, reflect adjustments to ensure alignment with current market conditions and apply to the S&P 500, S&P MidCap 400, and S&P SmallCap 600.
The new guidelines raise the minimum unadjusted market capitalisation thresholds.
For the S&P 500, companies must now have a market cap of at least $20.5 billion, up from $18 billion.
The S&P MidCap 400 range has shifted to $7.4 billion–$20.5 billion, compared to $6.7 billion–$18 billion previously.
For the S&P SmallCap 600, the range is now $1.1 billion–$7.4 billion, up from $1 billion–$6.7 billion.
The adjustments are intended to reflect the cumulative percentiles of the S&P Total Market Index (TMI) universe, with the S&P 500 capturing the top 85th percentile, the S&P MidCap 400 representing the 85th–93rd percentile, and the S&P SmallCap 600 encompassing the 93rd–99th percentile.
S&P DJI added that the criteria apply exclusively to new additions and do not affect existing constituents.
The methodology ensures that selected companies meet the minimum float-adjusted market cap threshold, equivalent to 50% of the index’s total market cap criteria.
