S&P Dow Jones Indices Announces Results of S&P Composite 1500 Index Consultation on Share Class Eligibility Rules

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Apr 17, 2023, 18:29 ET

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.

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