NEW YORK, June 4, 2026 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") conducted a consultation with market participants on potential changes to the S&P U.S. Indices Methodology and Dow Jones U.S. Total Stock Market Indices Methodology (collectively, the "Relevant Index Families") related to MegaCap companies.
The Index Committee appreciates the market engagement received in connection with this consultation and thanks all respondents for their feedback.
S&P DJI's Index Committee continually monitors market developments to ensure indices meet their stated objectives and considers methodology changes as needed to help ensure its indices continue to do so.
Market consultations are the primary mechanism through which the Index Committee engages with market participants and other stakeholders to seek feedback on whether methodology changes are necessary or appropriate, and to assess potential methodology developments. Consultations also provide an opportunity for any member of the public to submit input. This process is designed to preserve the independence of the Index Committee, effectively mitigate potential conflicts of interest, and help ensure transparency and fairness.
The Index Committee carefully reviews all consultation responses received. However, while all responses are reviewed and considered, the Index Committee is not bound by any comments or information submitted as part of the consultation.
S&P 500, S&P MidCap 400, and S&P SmallCap 600 Results:
Based on S&P DJI's Index Committee review of the markets and after consideration of responses received from a wide range of market participants, no changes will be made to the eligibility criteria including financial viability screens, seasoning period, or minimum IWF, for the S&P 500, S&P MidCap 400, or S&P SmallCap 600 as a result of the S&P Dow Jones Indices consultation on the treatment of MegaCap companies. Accordingly, there will be no changes to existing methodology for this index family.
S&P DJI determined that exceptions to the financial viability, seasoning, and IWF requirements should not be granted solely based on market capitalization. The decision not to adopt the proposed exceptions preserves core index principles by maintaining consistent application of these key requirements. Although there may be trade-offs between strict adherence to these eligibility requirements and broad representativeness, the current methodology provides substantial market coverage and sector balance. As a result, the indices can continue to meet their stated objectives while preserving their role as representative and investable benchmarks for the U.S. equity market.
The table below summarizes the consultation results.
Proposed
Methodology
Changes
Current Result
IPO Initial public offerings should be traded
Seasoning on an No Change
Period eligible exchange for at least 12 months
to before
be
reduced being considered for addition to an
to index.
six
months
from
12
months
Spin-offs or in-specie distributions
from existing
constituents are not required to have 12
months of
trading prior to their inclusion in the
S&P
Composite 1500.
Companies that migrate from an ineligible
exchange, emerge from bankruptcy, are
newly
designated to be domiciled in the U.S.
for index
purposes by S&P Dow Jones Indices, or
convert
from an ineligible share or
organizational type to an
eligible type do not need to trade on an
eligible
U.S. exchange for 12 months before being
considered for addition.
Investable To be eligible for addition, a stock must
have an No Change
Weight
Factor IWF of at least 0.10.
(IWF)
minimum
is
waived
for
MegaCap
companies Companies passing the total company level
market
capitalization criteria are also required
to
have a security level float-adjusted
market
capitalization (FMC) that is at least 50%
of the
respective index's total company level
minimum
market capitalization threshold.
Financial S&P Composite 1500. Generally Accepted No Change
Viability Accounting Principles (GAAP) net income
from
exception continuing operations must be positive
for for:
MegaCap
companies
o the most recent quarter, and
o the sum of the most recent four
consecutive
quarters
Rule Exceptions. Exceptions to the above
criteria
include:
• Migrations from one S&P Composite 1500
index
to another do not need to meet the
financial
viability, liquidity, or 50% of the
respective
index's total company level minimum
market
capitalization threshold criteria.
• Companies that are spun-off from
current S&P
Composite 1500 constituents do not need
to
meet the outside addition criteria
• Non-S&P Composite 1500 companies that
acquire S&P Composite 1500 index
constituents, but do not fully meet all
of the
eligibility criteria, may still be added
to an S&P
Composite 1500 index at the discretion of
the
Index Committee if the merger
consideration
includes the acquiring company issuing
stock to
target company shareholders, and the
Committee determines that the addition
could
mitigate turnover and enhance the
representativeness of the index as a
market
benchmark.
S&P Total Market Index (TMI), S&P Completion Index (CI), and Dow Jones U.S. Total Stock Market Index (TSM)
The S&P Total Market Index (TMI), S&P Completion Index (CI), and Dow Jones U.S. Total Stock Market Index (TSM) are broad market indices intended to represent the investment universe. The following changes will be applied.
Proposed
Methodology
Changes
Current
Result
MegaCap
Classification
Investable Weight To be eligible for addition, a stock To be eligible for addition, a stock
must have an must have
Factor (IWF) - IWF of at least 0.10. Current
constituents have no either:
minimum requirement.
• IWF of at least 0.10, or
S&P Total Market
Index • Float-adjusted market
capitalization
greater than or equal to?10% of the
total company level market
capitalization of the 100th largest
company in the S&P Total Market
Index, ranked by total market
capitalization as of the reference
date.
Current constituents have no minimum
requirement.
Investable Weight To be eligible for addition, a stock To be eligible for addition, a stock
must have an must have
Factor (IWF) - IWF of at least 0.10. Current
constituents have no either:
minimum requirement.
• IWF of at least 0.10, or
Dow Jones U.S.
Total Stock Market • Float-adjusted market
capitalization
Index greater than or equal to?10% of the
total company level market
capitalization of the 100th largest
company in the Dow Jones U.S. Total
Stock Market Index, ranked by total
market capitalization as of the
reference date.
Current constituents have no minimum
requirement.
An IPO that meets the requirements of the updated Investable Weight Factor (IWF) eligibility rule is eligible for fast-track entry, provided the company meets all other applicable fast-track criteria as well. Fast-track assessment is made using the closing price on the first day of trading on an eligible exchange. Once S&P Dow Jones Indices announces that an IPO is eligible for fast-track addition, it is added to the index with five business days' lead time. For more information on IPO fast track entry, see the relevant index methodology.
Float Release after the end of IPO Lock-Up Period
Consultation respondents generally supported implementing float increases following the release of lock-up shares gradually, or in tranches where appropriate, depending on company-specific circumstances.
S&P DJI applies the published methodology as the default approach. In accordance with the Index Committee's governance framework, the Index Committee may, in certain circumstances, exercise discretion in the implementation of float increases after the end of the IPO lock-up period to reduce market impact, support replicability, and promote orderly implementation, taking into account company-specific facts, such as size of the index event and timelines.
Any such decision will be communicated in advance where possible.
IMPACTED INDICES
Index Name Index Code
S&P Total Market Index (TMI) SPTMI
S&P Completion Index (CI) SPCMI
Dow Jones U.S. Total Stock Market Index DWCF
Please note that if a company is included within the above indices, such company may become eligible for derived indices that use the above index as a starting universe. For example, the derived indices include, but are not limited to, size, sector, style, factor, and sustainability indices derived from the impacted indices. Please refer to the individual index methodologies for more information on eligibility and timing.
IMPLEMENTATION TIMING
S&P DJI is implementing the above described methodology changes to the S&P Total Market Index (TMI), S&P Completion Index (CI), and Dow Jones U.S. Total Stock Market Index (TSM) effective prior to the market open on Monday, June 8, 2026.
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.
FOR MORE INFORMATION:
S&P Dow Jones Indices
index_services@spglobal.com
View original content:https://www.prnewswire.com/news-releases/sp-dow-jones-indices-consultation-on-treatment-of-megacap-companies--results-302792104.html
SOURCE S&P Dow Jones Indices
