NEW
YORK, April 17, 2023 /PRNewswire/ -- As markets
and investor sentiment evolve, S&P Dow Jones Indices ("S&P
DJI") periodically reviews its index methodologies, including
eligibility criteria, to ensure that its indices remain timely and
relevant. As part of this review process, and incorporating
consultation feedback from market participants, S&P DJI is
updating the share class eligibility rule for additions to the
S&P Composite 1500 Index and its component indices including
the S&P 500, the S&P MidCap 400, and the S&P SmallCap
600.
Share Class Eligibility Rules
Effective April 17, 2023,
all companies with multiple share class structures will be
considered eligible candidates for addition to the S&P
Composite 1500 and its component indices provided they meet all
other eligibility criteria. Previously excluded tracking stocks
will continue to be ineligible for the S&P Composite 1500 and
its component indices. There is no immediate impact on the S&P
Composite 1500 Index and its component indices as a result of this
change because this change only impacts future eligible index
candidates.
Previous Tracking Stocks and Multiple
Share
Classes Eligibility Criteria
|
Updated Tracking
Stocks and
Multiple Share
Classes Eligibility Criteria
|
S&P Composite
1500. Companies with multiple share
class structures and tracking stocks are not eligible for
the S&P Composite 1500 and its component indices.
Since July 31, 2017,
all existing S&P Composite 1500
constituent companies with multiple share class
structures are grandfathered in and will remain in the
S&P Composite 1500.
|
S&P Composite
1500. All companies with multiple
share class structures will be considered eligible
candidates for the S&P Composite 1500 and its
component indices provided they meet all other
eligibility criteria. However, tracking stocks will
continue to be ineligible for the S&P Composite 1500
and its component indices.
|
S&P DJI's consultation on the S&P Composite 1500 share
class eligibility rules comment period ran from October 25, 2022, through December 15, 2022. For reference, the
consultation can be found here.
The U.S. Indices methodology document is being updated to
reflect the above changes. For more information about S&P
Dow Jones Indices, please visit www.spglobal.com/spdji.
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.spglobal.com/spdji.
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