Not Every Large Cap Makes the S&P 500

Long_Equity
07-17 07:57

Passive investors love the $S&P 500(.SPX)$ .

What they don’t realise is that the criteria for entering and exiting the index isn’t quite as passive as you would expect.

The distinction between the S&P 500 large caps and the S&P 400 mid caps isn't always clear. Here I plot market cap vs revenue.

It’s interesting to see that there are S&P 400 companies that have a larger cap and greater revenue than some S&P 500 companies.

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