- S&P Dow Jones Indices (SPGI, Financial) updates market cap eligibility criteria for S&P Composite 1500 indices effective July 1, 2025.
- New market cap thresholds: $22.7 billion+ for S&P 500, $8.0-$22.7 billion for S&P MidCap 400, and $1.2-$8.0 billion for S&P SmallCap 600.
- Criteria apply only to new additions, with quarterly reviews to align with current market conditions.
S&P Dow Jones Indices (SPGI) has announced updates to the market capitalization eligibility criteria for new additions to the S&P Composite 1500 Indices, effective from July 1, 2025. The revised thresholds reflect higher minimum market caps, aiming to maintain the indices' representation of the market segments.
Under the new guidelines, the S&P 500 will require an unadjusted market capitalization of at least $22.7 billion, an increase from the previous $20.5 billion. For the S&P MidCap 400, the range will now be $8.0 billion to $22.7 billion, up from $7.4 billion to $20.5 billion. Meanwhile, the S&P SmallCap 600 will adjust its range to $1.2 billion to $8.0 billion, from the former $1.1 billion to $7.4 billion.
The changes signify market growth, with increases of approximately 10.7% for the S&P 500 threshold, 8.1% for the MidCap 400 upper boundary, and 9.1% for the SmallCap 600 upper limit. These updates are intended to reflect overall market appreciation while aligning with specific market segment guidelines—85th percentile for S&P 500, 85th-93rd for S&P MidCap, and 93rd-99th for S&P SmallCap.
The updated criteria apply solely to new index additions, ensuring that existing companies within the indices are unaffected unless future market conditions necessitate changes. This adjustment may impact future index fund compositions and ETF reconstitutions tracking these benchmarks, highlighting the ongoing expansion in U.S. equity market capitalization.
