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S&P U.S. INDICES INDEX METHODOLOGY …
Tags: additions, corporate actions, deletions, eligibility criteria, index calculations, index construction, index family, index maintenance, index methodology, introduction 3, investable, stock, table of contents,Pages: 21
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Created: Wed Sep 5 17:06:22 2007
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S&P U.S. INDICES
INDEX METHODOLOGY
September 2007
Table of Contents
Introduction 3
Index Family 3
Eligibility Criteria 5
Additions to the S&P U.S. Indices 5
Deletions from the S&P U.S. Indices 6
Timing of Changes 6
Index Construction 7
Approaches 7
Index Calculations 7
Shares Outstanding 7
Multiple Classes of Stock 7
Special Considerations for Total Market and Completion Indices 8
Index Maintenance 10
Rebalancing 10
Corporate Actions 10
Other Adjustments 10
Investable Weight Factor (IWF) 11
Base Date 11
Index Data 12
Total Return and Net Return Indices 12
Index Governance 13
Index Committee 13
Index Policy 14
Announcements 14
Holiday Schedule 14
Unscheduled Market Closures 14
Standard & Poor's: S&P U.S. Indices Methodology 1
Index Dissemination 15
Tickers 15
Index Alert 15
FTP 15
Appendices: Float Adjustment 16
Goals 16
Rules 16
Investable Weight Factors 18
S&P Contact Information 19
Index Management 19
Media Relations 19
Index Operations & Business Development 19
Disclaimer 20
Standard & Poor's: S&P U.S. Indices Methodology 2
Introduction
Standard & Poor's U.S. indices are designed to reflect the U.S. equity markets and,
through the markets, the U.S. economy. The S&P 500 focuses on the large-cap sector of
the market; however, since it includes a significant portion of the total value of the
market, it also represents the market. Companies in the S&P 500 are considered leading
companies in leading industries. The S&P 500 is a member of the S&P Global 1200
family of indices. The S&P MidCap 400 represents the mid-cap range of companies, and
the S&P SmallCap 600 represents small-cap companies. The three indices are combined
and calculated together as the S&P Composite 1500; the S&P 500 and S&P MidCap 400
are combined to form the S&P 900; the S&P MidCap 400 and S&P SmallCap 600 are
combined to form the S&P 1000. Index constituents are classified according to the
Global Industry Classification Standard (GICS®).
The indices should be fair, meaning that an investor who buys all the stocks in an index
with correct index weights can achieve the same performance that Standard & Poor's
calculates.
Index Family
In addition to the S&P 500, S&P MidCap 400, S&P SmallCap 600 and the combined
indices named above, the S&P U.S. indices include:
S&P Equal Weight Index. The S&P Equal Weight Index is comprised of the same
constituents as the S&P 500, but is equal- rather than capitalization-weighted. This index
was introduced in response to investor interest in an equal-weighted index that would
support different investment and benchmarking approaches while still recognizing the
importance of the leading companies in leading industries selected for the S&P 500. The
index is rebalanced quarterly, to 0.20% weight for each company. Further information is
available on the Web site at www.indices.standardandpoors.com.1
S&P 100. The S&P 100 consists of 100 companies selected from the S&P 500. To be
included, the companies should be among the larger and more stable companies in the
S&P 500, and must have listed options. Sector balance is considered in the selection of
companies for the S&P 100. This index is widely used for derivatives, and is the index
underlying the OEX options.
1
See David M. Blitzer, Srikant Dash, "The S&P 500 Equal Weight Index: Structure and
Methodology," November 20, 2004 at www.indices.standardandpoors.com.
Standard & Poor's: S&P U.S. Indices Methodology 3
S&P 500 O-Strip. The S&P 500 O-Strip index is an equity index comprised of those
stocks of the S&P 500 that are listed on the NASDAQ. Dividends, constituent changes
and share count adjustments are treated in the same manner and implemented at the same
time in the S&P 500 and the S&P 500 O-Strip index.
S&P U.S. REIT Composite. The S&P U.S. REIT Composite index tracks the market
performance of U.S. real estate investment trusts, known as REITs. The S&P U.S. REIT
Composite consists of approximately 100 REITs chosen for their liquidity and
importance in representing a diversified real estate portfolio. To be included, a REIT
must meet the same liquidity guidelines used for the S&P Composite 1500, and must
have at least US$100 million in unadjusted market capitalization. The S&P U.S. REIT
Composite index represents a balance of property types and geographic locations.
Mortgage REITs are not eligible for inclusion. REITs may also be included in the
S&P 500, S&P MidCap 400 and S&P SmallCap 600 at the same time they are in the
S&P U.S. REIT Composite.
S&P Total Market Index. The S&P Total Market Index includes all U.S. common
equities listed on the NYSE (including NYSE Arca), the American Stock Exchange, and
the NASDAQ National and Small Cap markets.
S&P Completion Index. A sub-index of the Total Market Index is the
S&P Completion Index. This index includes all stocks in the Total Market Index except
those in the S&P 500.
Standard & Poor's: S&P U.S. Indices Methodology 4
Eligibility Criteria
Additions to the S&P 500, S&P MidCap 400 and S&P SmallCap 600
Market Capitalization. Unadjusted market capitalization of US$ 5 billion or more for
the S&P 500, US$ 1.5 billion to US$ 5.5 billion for the S&P MidCap 400, and
US$ 300 million to US$ 2 billion for the S&P SmallCap 600. The market cap of a
potential addition to an index is looked at in the context of its short- and medium-term
historical trends, as well as those of its industry. These ranges are reviewed from time to
time to assure consistency with market conditions.
Liquidity. Adequate liquidity and reasonable price the ratio of annual dollar value
traded to market capitalization should be 0.3 or greater. Very low stock prices can affect
a stock's liquidity.
Domicile. U.S. companies. A U.S. company, for index purposes, should have the following
characteristics:
· Incorporated in the U.S.
· Financial reporting should be U.S. GAAP, in U.S. dollars, and the company should not be
considered a foreign entity by the SEC
· A corporate governance structure consistent with U.S. practice
· Headquartered in the U.S.
· The U.S. portion of revenues, operations, fixed assets and employees should be a significant
portion of the total, but need not exceed 50%
· The common stock should be listed on NYSE, Amex, NASDAQ or NYSE Arca (ADRs are
not acceptable)
· The company should generally be considered a U.S. company by analysts and investors.
If one of these criteria is not met and there is no other major market in which a company would
logically be assigned, S&P may deem it a U.S. company for index purposes.
Public Float. Public float of at least 50% of the stock.
Sector Classification. Contribution to sector balance maintenance, as measured by a
comparison of each GICS sector's weight in an index with its weight in the market, in the
relevant market capitalization range.
Financial Viability. Usually measured as four consecutive quarters of positive as-
reported earnings. As-reported earnings are Generally Accepted Accounting Principles
Standard & Poor's: S&P U.S. Indices Methodology 5
(GAAP) net income excluding discontinued operations and extraordinary items. For
REITs, financial viability is based on both as-reported earnings and Funds From
Operations (FFO). FFO is a measure commonly used in REIT analysis.
Another measure of financial viability is a company's balance sheet leverage, which
should be operationally justifiable in the context of both its industry peers and its
business model.
Treatment of IPOs. Initial public offerings should be seasoned for 6 to 12 months
before being considered for addition to an index.
Eligible Companies. Operating company and not a closed-end fund, holding company,
tracking stock, partnership, investment vehicle or royalty trust. Real estate investment
trusts are eligible for inclusion in Standard & Poor's U.S. indices, as are business
development companies (BDCs).
Deletions from the S&P 500, S&P MidCap 400 and S&P SmallCap 600
· Companies that are involved in mergers, acquisitions, or significant restructuring
such that they no longer meet inclusion criteria.
· Companies that substantially violate one or more of the addition criteria.
Standard & Poor's believes turnover in index membership should be avoided when
possible. At times a company may appear to temporarily violate one or more of the
addition criteria. However, the addition criteria are for addition to an index, not for
continued membership. As a result, an index constituent that appears to violate criteria
for addition to that index will not be deleted unless ongoing conditions warrant an index
change. When a company is removed from an index, Standard & Poor's will explain the
basis for the removal.
Timing of Changes
Changes to the U.S. indices other than the S&P Total Market Index are made as needed,
with no annual or semi-annual reconstitution.
The S&P Equal Weight Index is rebalanced quarterly for weights, to 0.20% for each
company in the index.
Standard & Poor's: S&P U.S. Indices Methodology 6
Index Construction
Approaches
Standard & Poor's U.S. indices are designed to be liquid, so as to support investment
products such as index mutual funds, exchange traded funds, index portfolios, index
futures and options.
Index Calculations
On any given day, the index value is the quotient of the total float-adjusted market
capitalization of the index's constituents and its divisor. Continuity in index values is
maintained by adjusting the divisor for all changes in the constituents' share capital after
the base date. This includes additions and deletions to the index, rights issues, share
buybacks and issuances, and spinoffs. The divisor's time series is, in effect, a
chronological summary of all changes affecting the base capital of the index. The divisor
is adjusted such that the index value at an instant just prior to a change in base capital
equals the index value at an instant immediately following that change.
Shares Outstanding
The shares counted for index calculation are shares outstanding, and are essentially
"basic shares" as defined by The Financial Accounting Standards Board (FASB) in
Generally Accepted Accounting Principles (GAAP). This count is float-adjusted to
reflect only available shares.
For float adjustment methodology, please see the Appendix.
Multiple Classes of Stock
Some companies have more than one class of common stock outstanding. In
Standard & Poor's U.S. indices, each company is represented only once. The stock price
is based on one class, usually the most liquid class, and the share count is based on the
total shares outstanding. To determine the available float for companies with multiple
classes of stock, Standard & Poor's calculates the weighted average investable weight
factor (IWF) for the stock using the proportion of total company market capitalization of
each share class as the weights. The result is reviewed to assure that when the weighted
average IWF is applied to the class included in the index, the shares to be purchased are
not significantly larger than the available float for the included class.
Standard & Poor's: S&P U.S. Indices Methodology 7
Special Considerations for Total Market and Completion Indices
Except as noted here, the maintenance of the S&P Total Market Index (S&P TMI) and
the S&P Completion Index follow the same procedures as the S&P 500, S&P MidCap
400 and S&P SmallCap 600.
The S&P TMI includes all U.S. common equities listed on the NYSE (including NYSE
Arca), the American Stock Exchange, the NASDAQ National Market and the NASDAQ
Small Cap. Ineligible securities include limited partnerships, master limited partnerships,
OTC bulletin board issues, pink sheet-listed issues, closed-end funds, ETFs, royalty
trusts, tracking stocks, ADRs, ADSs and MLP IT units. Real estate investment trusts
(REITs) are included in the TMI.
For inclusion in the S&P TMI, companies must be U.S. companies according to the
criteria used for the S&P 500, S&P MidCap 400 and S&P SmallCap 600. For inclusion,
a company must have an investable weight factor (IWF) of 10% (0.10) or more and an
annual liquidity measure of 10% (0.10) or more. There is no minimum market
capitalization requirement for the S&P TMI. Initial public offerings (IPOs) are included
on the same basis as other companies, providing there is one month of trading data as of
the last day of the month prior to rebalancing. IPOs that are added will remain in the
index for a minimum of two quarters. Exclusions due to the violation of eligibility
criteria will be considered thereafter. Spinoffs are normally added on the effective date.
A stock is immediately added to the S&P Completion Index if it is dropped from the S&P
500 for a reason other than acquisition, delisting from a major exchange or bankruptcy.
Likewise, all stocks added to the S&P 500 are immediately removed from the
S&P Completion Index. S&P Completion Index constituents are rebalanced quarterly.
Qualifications for inclusion or exclusion are determined on the last trading day of the
month prior to the rebalancing. Rebalancing coincides with expiration of U.S. index
futures and options, on the third Friday of the last month of each quarter.
Share changes of 5% or more related to public offerings and private placements are
implemented weekly. Share increases of 5% or more resulting from mergers in which
both the target and acquirer are Completion Index constituents are implemented after the
close of trading on the effective date of the deal's close; share increases of 5% or more
resulting from mergers in which the acquirer is, but the target is not, a
S&P Completion Index constituent are implemented weekly.
All other share changes are effective at the close of the third Friday of the last month of
each quarter (March, June, September, December).
Companies with multiple share classes follow the same rule as the S&P 500: the most
liquid class is included in the index, with the aggregate count of the different share
classes used for index calculation and analysis.
Standard & Poor's: S&P U.S. Indices Methodology 8
Companies delisted as a result of merger, acquisition or other corporate action are
removed at a time announced by Standard & Poor's, normally at the close of the last day
of trading. Constituents that are halted from trading may be kept in the index until
trading resumes, at the discretion of Standard & Poor's. If a company is moved to the
pink sheets or the bulletin board, the stock will be removed. An issue re-emerging from
pink sheets or bulletin board status will be eligible for inclusion at the next regular
rebalancing if it meets the requirements. Index changes are announced with one to five
days' advance notice.
IWF changes are implemented annually in September. IWF changes greater than 10
percentage points are implemented as soon as reasonably possible if due to corporate
actions (e.g., mergers, acquisitions, spinoffs).
If a company is added to the S&P 500, S&P MidCap 400 or S&P SmallCap 600, its IWF
and shares outstanding are subject to review at the time of the addition to the more senior
index.
Standard & Poor's: S&P U.S. Indices Methodology 9
Index Maintenance
Rebalancing
Changes to the U.S. indices, other than the S&P Completion Index, are made on an as-
needed basis. There is no annual or semi-annual reconstitution. Rather, changes in
response to corporate actions and market developments can be made at any time.
Constituent changes are typically announced two to five days before they are scheduled
to be implemented. Announcements are available to the public via the Web site,
www.indices.standardandpoors.com, before or at the same time they are available to
clients or the affected companies.
Share Updates. Changes in a company's shares outstanding of less than 5% due to its
acquisition of another company in the same headline index (that is, both are in the S&P
500, S&P MidCap 400 or S&P SmallCap 600) are made as soon as reasonably possible.
All other changes of less than 5% are accumulated and made quarterly on the third Friday
of March, June, September, and December; they are usually announced two days prior.
Such changes include share increases of less than 5% due to the merging of
S&P Composite 1500 constituents that are not members of the same headline index (see
above).
5% Rule. Changes in a company's shares outstanding of 5% or more due to mergers,
acquisitions, public offerings, private placements, tender offers, Dutch auctions or
exchange offers are made as soon as reasonably possible. Other changes of 5% or more
(due to, for example, company stock repurchases, redemptions, exercise of options,
warrants, conversion of preferred stock, notes, debt, equity participations or other
recapitalizations) are made weekly, and are announced on Tuesdays for implementation
after the close of trading on Wednesday. In the case of certain rights issuances, in which
the number of rights issued and/or terms of their exercise are deemed substantial, a price
adjustment and share increase may be implemented immediately.
Corporate Actions
Corporate actions (such as stock splits, stock dividends, spinoffs and rights offerings) are
applied after the close of trading on the day prior to the ex-date.
Other Adjustments
In cases where there is no achievable market price for a stock being deleted, it can be
removed at a zero or minimal price at the Index Committee's discretion, in recognition of
the constraints faced by investors in trading bankrupt or suspended stocks.
Standard & Poor's: S&P U.S. Indices Methodology 10
Investable Weight Factor (IWF)
Please refer to Appendix for details.
Base Date
Index Base Date Base Value
S&P 500 1941-1943 10
S&P MidCap 400 06/28/1991 100
S&P SmallCap 600 12/31/1993 100
S&P 900 12/30/1994 1000
S&P 1000 12/31/1994 1000
S&P Composite 1500 12/31/1994 100
S&P U.S. REIT Composite 12/31/1996 100
S&P Total Market Index - Price Only 09/08/2003 1039.58
S&P Total Market Index Total Return 09/08/2003 1509.47
Standard & Poor's: S&P U.S. Indices Methodology 11
Index Data
Total Return and Net Return Indices
Total return index series are calculated for the U.S. indices as well as the price return
series. Ordinary cash dividends are applied on the ex-date in calculating the total return
series. "Special dividends" are those dividends that are outside of the normal payment
pattern established historically by the issuing corporation. These may be described by the
corporation as "special," "extra," "year-end," or "return of capital." Whether a dividend
is funded from operating earnings or from other sources of cash does not affect the
determination of whether it is ordinary or special. "Special dividends" are treated as
corporate actions with offsetting price and divisor adjustments; the total return index
series reflect both ordinary and special dividends.
Standard & Poor's: S&P U.S. Indices Methodology 12
Index Governance
Index Committee
Standard & Poor's U.S. indices are maintained by the U.S. Index Committee. There are
eight members of the Index Committee; all are full-time professional members of
Standard & Poor's staff. The committee meets monthly. At each meeting, the Index
Committee reviews pending corporate actions that may affect index constituents,
statistics comparing the composition of the indices to the market, companies that are
being considered as candidates for addition to an index, and any significant market
events. In addition, the Index Committee may revise index policy covering rules for
selecting companies, treatment of dividends, share counts or other matters.
Standard & Poor's considers information about changes to its U.S. indices and related
matters to be potentially market moving and material. Therefore, all Index Committee
discussions are confidential.
Standard & Poor's: S&P U.S. Indices Methodology 13
Index Policy
Announcements
Announcements of additions and deletions for the S&P 500, S&P MidCap 400,
S&P SmallCap 600 and S&P U.S. REIT Composite are made at 05:15 PM Eastern Time.
Press releases are posted on the Web site, www.indices.standardandpoors.com, and are
released to major news services.
Index methodology is constantly under review for best practices, and any changes are
announced well ahead of time via the Web site and email to all clients.
Holiday Schedule
The S&P U.S. indices are calculated when the U.S. equity markets are open.
A complete holiday schedule for the year is available on the Standard & Poor's Web site
at www.indices.standardandpoors.com.
Unscheduled Market Closures
In situations where an exchange is forced to close early due to unforeseen events, such
computer or electric power failures, weather conditions or other events,
Standard & Poor's will calculate the closing price of the indices based on (1) the closing
prices published by the exchange, or (2) if no closing price is available, the last regular
trade reported for each stock before the exchange closed. In all cases, the prices will be
from the primary exchange for each stock in the index. If an exchange fails to open due
to unforeseen circumstances, the index will use the prior day's closing prices. If all
exchanges fail to open, Standard & Poor's may determine not to publish the index for that
day.
Standard & Poor's: S&P U.S. Indices Methodology 14
Index Dissemination
Index levels are available through Standard & Poor's Web site at
www.indices.standardandpoors.com, major quote vendors (see codes below), numerous
investment-oriented Web sites, and various print and electronic media. Standard &
Poor's Web site also provides an archive of recent index announcements and press
releases, as well as a monthly release giving total returns for Standard & Poor's headline
indices.
Tickers
Index Bloomberg Reuters
S&P 500 SPX .SPX
S&P MidCap 400 MID .MID
S&P SmallCap 600 SML .SML
S&P Composite 1500 SPR .SPSUP
S&P 900 SPLGMID .SPLGMID
S&P 1000 SPK .SPMIDSM
S&P 100 (OEX) OEX .OEX
S&P Equal Weight Index SPXEW .SPXEW
S&P U.S. REIT Composite SPREIT .SPREITS
Index Alert
Complete data for index replication (including share counts, tickers and data on index
levels and returns) are available through Standard & Poor's fee-based service,
S&P Index Alert.
FTP
Daily stock level and index data is available via FTP on subscription.
For further information, please refer to Standard & Poor's Web site at
www.indices.standardandpoors.com.
Standard & Poor's: S&P U.S. Indices Methodology 15
Appendices: Float Adjustment
Goals
Under float adjustment, the share counts used in calculating the indices reflect only those
shares that are available to investors, rather than all of a company's outstanding shares.
Float adjustment excludes shares closely held by control groups, other publicly traded
companies or government agencies.
With a float-adjusted index, the value of the index reflects the value available in the
public markets. Further, reducing the relative investment index investors have in stocks
with limited float stocks that typically are less liquid should lower the cost of index
investing.
Rules
The goal is to distinguish strategic shareholders (whose holdings depend on concerns
such as maintaining control rather than the economic fortunes of the company) from
those holders whose investments depend on the stock's price and their evaluation of the
company's future prospects. Shareholders concerned with control of a company include
board members, founders and owners of large blocks of stock. Likewise, holdings of
stock in one corporation by another corporation are normally for control, not investment,
purposes. While government holdings are unusual in the United States, normally
government holdings are not investments made because a stock is expected to appreciate
or the government entity is managing its excess funds through equity investments.
Share owners acting as investors will consider changes in the stock's price, earnings or
the company's operations as possible reasons to buy or sell the stock. They hold the
stock because they expect it to appreciate in value and believe the stock offers better risk
and return opportunities than other investments. Further, a sharp rise or fall in the stock's
price could be a reason to adjust their positions. Mutual funds, pension plans and other
institutional investors are usually in this category. The fact that an institutional investor
has held a block of shares for several years is not evidence that the block is being held for
control, rather than investment, reasons.
Standard & Poor's: S&P U.S. Indices Methodology 16
Standard & Poor's defines three groups of shareholders whose holdings are presumed to
be for control and which are, therefore, subject to float adjustment. Within each group,
the holdings are totaled. In cases where holdings in a group exceed 10% of the
outstanding shares of a company, the holdings of that group are excluded from the float-
adjusted count of shares used in index calculations. Calculation accuracy depends on the
underlying data; however, investable weight factors are published to the nearest 1% of
shares outstanding.
The three groups are:
1. Holdings by other publicly traded corporations, venture capital firms, private
equity firms, strategic partners or leveraged buy-out groups.
2. Holdings by government entities, including all levels of government in the
United States or foreign countries.
3. Holdings by current or former officers and directors of the company, founders of
the company, or family trusts of officers, directors or founders. Second, holdings
of trusts, foundations, pension funds, employee stock ownership plans or other
investment vehicles associated with and controlled by the company.
It is also useful to identify some holders which are considered to be investors and not
control holders. Mutual funds, investment advisory firms, pension funds or foundations
not associated with the company and investment funds in insurance companies are part of
the float. These holders are investors, not strategic holders. At times data will show that
these investors hold positions for several years with virtually no change. This is not
evidence that the holding is not for investment purposes; rather it merely suggests that the
portfolio manager continues to see the stock as a good investment. Further, when the
stock is held in an index fund, one would not expect to see substantial changes in the
holdings.
A company's annual report, proxy or 10-K may include listings of some equity-like
securities that are not included in total shares outstanding and need not be considered in
calculating available float. These include treasury stock, stock options, restricted shares,
equity participation units, warrants, preferred stock, convertible stock and rights.
In a few cases, a company's ultimate shareholders may be beneficiaries of a trust which
holds their stock. (Examples usually include cases in which shares were distributed as
part of the initial public offering.) If the trust beneficiaries can buy and sell the stock
without any difficulty or significant additional expenses beyond typical brokerage fees,
the shares in a trust are part of the available float. If the shares in a trust cannot be sold,
the shares would not be counted as part of the available float.
Shares of a U.S. company traded in Canada as "exchangeable" shares are included in the
total share count and in the float unless they fall under one of the three groups
enumerated above.
If a company has more than one class of stock outstanding, shares in an unlisted or non-
traded class are treated as if listed or traded if shareholders can convert the unlisted stock
to the listed class without undue delay or cost.
Standard & Poor's: S&P U.S. Indices Methodology 17
Investable Weight Factors
For each stock an investable weight factor (IWF) is calculated:
IWF = (available float shares)/(total shares outstanding) (1)
where available float shares is defined as total shares outstanding less shares held in one
or more of the three groups listed above where the group holdings exceed 10% of the
outstanding shares.
The float-adjusted index is calculated:
Index = (j (PjSjIWFj))/(Divisor) (2)
Where Pj is the price of stock j, Sj is the total shares outstanding of stock j and IWFj is the
investable weight factor. The divisor is the index divisor.
Standard & Poor's: S&P U.S. Indices Methodology 18
S&P Contact Information
Index Management
David M. Blitzer, Ph.D. Managing Director & Chairman of the Index Committee
david_blitzer@standardandpoors.com +1.212.438.3907
James Brophy Senior Director, U.S. Indices
Media Relations
David Guarino Communications
dave_guarino@standardandpoors.com +1.212.438.1471
Index Operations & Business Development
North America
New York
Maureen O'Shea +1.212.438.2046
Wendy Chan +1.212.438.4080
Toronto
Tony North +1.416.507.3204
Europe
Paris
Christopher O'Brien +33.1.40.75.77.91
London
Susan Fagg +44.20.7176.8388
Asia
Tokyo
Seiichiro Uchi +813.4550.8568
Beijing
Andrew Webb +86.10.6569.2919
Sydney
Jason Hill +61.2.9255.9872
Standard & Poor's: S&P U.S. Indices Methodology 19
Disclaimer
The report is published by Standard & Poor's, 55 Water Street, New York, NY 10041.
Copyright © 2007. Standard & Poor's is a division of The McGraw-Hill Companies, Inc.
All rights reserved. Standard & Poor's does not undertake to advise you of changes in
the information contained in this report.
These materials have been prepared solely for informational purposes based upon
information generally available to the public from sources believed to be reliable.
Standard & Poor's makes no representation with respect to the accuracy or completeness
of these materials, the content of which may change without notice. The methodology
involves rebalancings and maintenance of the indices that are made periodically during
each year and may not, therefore, reflect real time information. Standard & Poor's
disclaims any and all liability relating to these materials and makes no express or implied
representations or warranties concerning the accuracy or completeness of the report.
No portion of this publication may be reproduced in any format or by any means
including electronically or mechanically, by photocopying, recording or by any
information storage or retrieval system, or by any other form or manner whatsoever,
without the prior written consent of Standard & Poor's.
Analytic services and products provided by Standard & Poor's are the result of separate
activities designed to preserve the independence and objectivity of each analytic process.
Standard & Poor's has established policies and procedures to maintain the confidentiality
of non-public information received during each analytic process.
Standard & Poor's: S&P U.S. Indices Methodology 20