S&P Dow Jones Indices raises market cap thresholds for major indexes

Published 01/07/2025, 22:50
S&P Dow Jones Indices raises market cap thresholds for major indexes

NEW YORK - S&P Dow Jones Indices announced Tuesday it has updated the market capitalization eligibility criteria for additions to its S&P Composite 1500 Indices, effective immediately.

The minimum market capitalization requirement for the S&P 500 has increased to $22.7 billion from $20.5 billion previously. For the S&P MidCap 400, the range has been adjusted to $8.0 billion to $22.7 billion, up from $7.4 billion to $20.5 billion. The S&P SmallCap 600 criteria now requires companies to have market capitalizations between $1.2 billion and $8.0 billion, compared to the previous range of $1.1 billion to $7.4 billion.

These thresholds are reviewed at the beginning of each calendar quarter and updated as needed to reflect current market conditions. The criteria are designed to capture specific percentile ranges of the S&P Total Market Index universe, with the S&P 500 representing approximately the 85th percentile.

S&P DJI emphasized that these requirements apply only to new additions to the indices, not for continued membership. Existing constituents that fall below these thresholds will not automatically be removed unless other conditions warrant an index change.

Companies must also have a security level float-adjusted market capitalization that is at least 50% of the respective index’s total company-level minimum market capitalization threshold to be eligible for addition.

The announcement was made in a press release statement from S&P Dow Jones Indices, a division of S&P Global (NYSE:SPGI).

In other recent news, S&P Global announced a cash dividend of $0.96 per share for the third quarter of 2025. This dividend will be payable on September 10, 2025, to shareholders of record as of August 26, 2025, continuing the company’s long-standing tradition of regular quarterly distributions. S&P Global has maintained a consistent record of dividend payments since 1937 and is among fewer than 30 companies in the S&P 500 that have increased their dividends annually for over 50 consecutive years.

In other developments, the Eurozone manufacturing activity showed signs of recovery in June, with the HCOB Manufacturing Purchasing Managers’ Index (PMI) rising slightly to 49.5, marking the highest level since August 2022. Germany’s manufacturing orders experienced growth at the fastest pace in more than three years, with the PMI for German manufacturing rising to 49.0 in June. Meanwhile, the French manufacturing sector weakened as the PMI dropped to 48.1 in June, indicating further contraction. British manufacturing also showed improvement, with the PMI rising to 47.7 in June, though it remained in contraction territory for the ninth consecutive month.

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