Requires total company level market capitalizations of: o S&P 500: US$ 20.5 billion or more o S&P MidCap 400: US$ 7.4 billion to US$ 20.5 billion o S&P SmallCap 600: US$ 1.1 billion to US$ 7.4 billion. The market capitalization guideline ranges are expressed in dollar ranges.
For the S&P SmallCap 600, the range is now $1.1 billion–$7.4 billion, up from $1 billion–$6.7 billion.
To be eligible for S&P 500 index inclusion, a company should be a U.S. company, have a market capitalization of at least USD 8.2 billion, be highly liquid, have a public float of at least 50% of its shares outstanding, and its most recent quarter's earnings and the sum of its trailing four consecutive quarters' ...
S&P 500 Investment Time Machine
Imagine you put $1,000 into either fund 10 years ago. You'd be up to roughly 126.4% — or $3,282 — from VOO and 126.9% — or $3,302 — from SPY. That's not exactly wealthy, but it shows how you can more than triple your money by holding an asset with relatively low long-term risk.
The new market cap range for S&P MidCap 400 inclusion is $7.4 billion to $20.5 billion, increased from the previous range of $6.7 billion to $18.0 billion.
Looking at the S&P 500 from 2013 to mid-2023, the average S&P 500 return for the last 10 years is 12.39% (9.48% when adjusted for inflation), which is also higher than the annual average return of 10%.
Limit down example
These bands are different depending on the index and the time of day. For the S&P 500, the limit down is set at -5% outside of market hours (from 11pm to 2.30pm Swiss time) and if the price exceeds that band then trading is suspended for a period, usually 15 minutes..
In S&P Global Ratings long-term rating scale, issuers and debt issues that receive a rating of 'BBB-' or above are generally considered by regulators and market participants to be “investment-grade,” while those that receive a rating lower than 'BBB-' are generally considered to be “speculative-grade.”
What Is the Difference Between the S&P 500 and the S&P 600? The S&P 500 index is a gauge of the 500 largest stocks in the U.S. The S&P 600, on the other hand, covers the small-cap range of U.S. stocks.
Large-cap: Market value of $10 billion or more; generally mature, well-known companies within established industries. Midcap: Market value between $3 billion and $10 billion; typically established companies within industries experiencing or expected to experience rapid growth.
Instead, the title for highest stock market return in 2024 belongs to Palantir, the Peter Thiel-founded software firm that specializes in data analytics, which returned 340.5% on the year. Nvidia's 171.2% lands it in third.
Mega-cap companies have a market value above $200 billion. Large-cap companies have a market value between $10 billion and $200 billion. Mid-cap companies have a market value between $2 billion and $10 billion. Small-cap companies have a market value between $250 million and $2 billion.
$3,000 X 12 months = $36,000 per year. $36,000 / 6% dividend yield = $600,000. On the other hand, if you're more risk-averse and prefer a portfolio yielding 2%, you'd need to invest $1.8 million to reach the $3,000 per month target: $3,000 X 12 months = $36,000 per year.
The S&P 500 lost decade - 2000 to 2010
During this decade, S&P 500 investors had to deal with two market downturns - the aftermath of the .com bubble and the Global Financial Crisis (GFC). This led to the S&P 500 having a negative return over the decade (01/01/2000 - 31/12/2009).
The S&P 400 has a smaller gap between the largest and smallest index weights compared to the S&P 500. Looking at constituent sizes at the end of March 2024, the average S&P 400 company was less than one-tenth the size of the average S&P 500 company and three times the size of the average S&P 600 constituent.
In other words, the Rule of 20 suggests that markets may be fairly valued when the sum of the P/E ratio and the inflation rate equals 20. The stock market is deemed to be undervalued when the sum is below 20 and overvalued when the sum is above 20.
$3,000 for most index funds. $50,000 for most actively managed funds. $100,000 for certain sector-specific index funds.
$10,000 invested in the S&P 500 at the beginning of 2000 would have grown to $32,527 over 20 years — an average return of 6.07% per year.
Warren Buffett has said that 90 percent of the money he leaves to his wife should be invested in stocks, with just 10 percent in cash. Does that work for non-billionaires? As far as asset allocation advice goes, 90 percent in stocks sounds pretty aggressive.