S&P 500Ownership: Standard & Poor’s.
Updating: Reported daily. Index components are changed as needed.
History: First published in 1957.
Characteristics:
- Covers 75% of U.S. equities
- Ideal proxy for the total market
- Bellwether for American economy
- Included in the Index of Leading indicators
Selection:
- Selected by S&P Index Committee
- This stock index comprises stock price of 500 large cap companies representative of important industries in the U.S. weighted by float
Addition criteria:
- U.S. Company
- Market cap minimum of $5 billion
- Public float minimum of 50%
- Financial viability: at least four consecutive quarters of positive as-reported earnings (GAAP Net income excluded discontinued operations and extraordinary items)
- Liquidity and reasonable price: annual dollar value traded/market cap >=0.3
- Stock representation
- Company type: operating companies (close-end funds, holding companies, partnerships, investment vehicles and royalty trust not included)
Index removals:
- Substantially violate one or more of the inclusion criteria
- Involved in M&A or significant restructuring, no longer meet inclusion criteria