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S&P Dow Jones Indices Updates Market Capitalization Guidelines

On July 1, 2025, S&P Dow Jones Indices (S&P DJI) will implement changes to the market capitalization eligibility criteria for joining the S&P Composite 1500 indices. This significant update aims to ensure that the criteria reflect the current market environment while enhancing the quality of companies included in its indices.

Updated Market Capitalization Ranges

The revised market capitalization ranges are as follows:

• - S&P 500: Now requires a minimum market cap of $22.7 billion, up from $20.5 billion.
• - S&P MidCap 400: The minimum market cap is raised to $8.0 billion from $7.4 billion.
• - S&P SmallCap 600: Companies must have a minimum market capitalization of $1.2 billion, an increase from $1.1 billion.

These updates are part of the quarterly reviews that assess and adjust the market cap criteria based on prevailing market conditions. This ensures that the indices adequately represent the overall market and that they maintain a high standard of quality.

Purpose of the Adjustments

The adjustments to market cap eligibility are intended to align with the cumulative percentiles of the S&P Total Market Index (TMI) universe:

• - For the S&P 500, only companies in the 85th percentile and above will qualify.
• - The S&P MidCap 400 will include companies between the 85th and 93rd percentiles.
• - The S&P SmallCap 600 will accept those in the 93rd to 99th percentiles.

This methodology underscores S&P DJI's commitment to ensuring that the indices include robust companies capable of delivering relevant market indicators to investors.

Additional Criteria

In addition to the overall market capitalization requirements, companies must meet a security level float-adjusted market capitalization (FMC) of at least 50% of their respective index's total company-level minimum market capitalization threshold. This ensures a limited degree of stock availability, further optimizing the index constituents concerning trading and index performance.

It is also crucial to note that the market capitalization eligibility criteria apply strictly to companies looking to be added to the indices. Existing constituents are not removed unless they fall below an ongoing threshold that necessitates a change in index membership.

Historical Context

S&P DJI has a long history of providing relevant data on market cap ranges, with records dating back to 2007. This historical data is publicly accessible in Appendix A of the U.S. Indices methodology, which will soon receive updates to reflect the current changes being implemented.

Investors can access further details about these adjustments and the broader implications for market participants through the S&P DJI's official website: www.spglobal.com/spdji.

About S&P Dow Jones Indices

S&P Dow Jones Indices stands as the world's largest index provider, offering essential index-based data, research, and benchmarks like the renowned S&P 500 and the Dow Jones Industrial Average. Its longstanding tradition of index innovation dates back to 1884, and S&P DJI continues to shape the investment landscape by providing robust solutions for market measurement and trading. As a division of S&P Global (NYSE: SPGI), which specializes in delivering insightful data for decision-making across various sectors, S&P DJI remains a trusted resource for investors globally.