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= S&P 400 = From Wikipedia, the free encyclopedia Jump to navigationJump to search The S&P MidCap 400 Index, more commonly known as the S&P 400, is a stock market index from S&P Dow Jones Indices. The index serves as a barometer for the U.S. mid-cap equities sector and is the most widely followed mid-cap index. To be included in the index, a stock must have a total market capitalization that ranges from $2.4 billion to $8.2 billion at the time of addition to the index. As of 31 January 2020, the median market cap was $4.26 billion with the market cap of the largest company in the index at nearly $13.3 billion and the smallest company at $1.0 billion. The index's market cap covers nearly 6 percent of the total US stock market and was launched on June 19, 1991.

It has set a series of all-time highs since the Federal Reserve announced its third round of recent quantitative easing in mid-September 2012. At the weekly and monthly close of November 30, 2012, the index settled at the 1,000 point mark, and it has continued to rise in early 2013, setting new records above 1,200 by mid-May.

S&P 400 Eligibility Requirements

 * Universe- All constituents must be U.S. Companies
 * Eligibility Market Cap- To be included, companies must have an unadjusted market cap of USD 2.4 Billion to 8.2 Billion. They must also have a float-adjusted market cap that is at least 50% of the unadjusted minimum market cap threshold
 * Public Float- Companies must have an investable weight factor (IWF) of at least 0.10.
 * Financial Viability- Companies must have positive as-reported earnings over the most recent quarter as well as the most recent four quarters summed together.
 * Adequate Liquidity and Reasonable Price- Using composite pricing and and volume, the ratio of annual dollar value traded (defined as average closing price over the period multiplied by historical volume) to float-adjusted market capitalization should at least be 1.00. The stock should trade a minimum of 250,000 shares in each of the six months leading up to the evaluation date.
 * Sector Representation-Should be in the relevant market capitalization range for its sector.

Pros for investing in the S&P 400:

 * Growth Potential- Since most of the companies in the S&P 400 Index are well established mid-cap companies that are still in the growth phase, then it offers potential for a stock price growth when the companies transition to a large-cap stock.
 * Relative Stability- Since the companies in the S&P 400 Index are well established mid-cap companies, they are not as volatile or as risky as other startup companies that can be found in the S&P 600 Index.
 * Diversification- This index contains 400 companies and typically has a diverse range across multiple sectors. Diversifying one's assets reduces market risks in case any one specific sector is majorly impacted.

Cons for investing in the S&P400:

 * Relative Stability- Although these companies are more stable than other startup companies found in the S&P 600, they are not as stable as the large-cap companies in the S&P 500. There is a higher potential for the value to drop more than the investor's original amount.
 * Fund Management Fees- Unless an investor has the capital to recreate the S&P 400 on their own by buying each stock, they will most likely invest in a mutual fund that covers the S&P 400. This may come with its own set of fees for the fund manager overseeing the mutual fund on the investors behalf.

History of S&P Global and the creation of the S&P 400

 * 1860- Businessman Henry Varnum Poor publishes the the History of the Railroads and Canals of the United States in order to help investors understand the emerging railroad business.
 * 1896- Reporter Charles Dow creates the Dow Jones Industrial Average to demonstrate the investment potential of the stock market.
 * 1941- Standard Statistics Co. and Poor's Publishing Co. merge to form Standard and Poor's.
 * 1957- The S&P 500 is introduced as the worlds first computer-generated stock index and eventually becomes the world's most tracked index.
 * 1991- The S&P 400 is launched and introduced.

Historical Movements of the S&P 400
According to historical data of the movements of the S&P 400, the S&P 400 generally moves upward throughout the years.

For a list of constantly updated data with each days opening, closing, highs and lows, please visit https://finance.yahoo.com/quote/%5EMID/history?period1=677289600&period2=1607472000&interval=1mo&filter=history&frequency=1mo&includeAdjustedClose=true Percentage return on investments from beginning of the year to the end of the year. (On PDF fact sheet).

Constituents and Sector breakdown of the S&P 400
The constituents of the S&P 400 are the 400 companies that make up the index. The constituents of the index are always changing. The following sector breakdown reflects the current distribution of companies across the economic sectors.

The link below leads to a wikimedia article that contains the most recent list of the constituents. Sector breakdown of the 400 companies in the S&P 400 and what sectors are most represented.

For the list of all of the 400 companies in this index, visit this link- List of S&P 400 Companies.

Contents

 * 1Record values
 * 2Investing
 * 3Versions
 * 4Annual returns
 * 5Components
 * 6See also
 * 7References

Investing[edit]
The following exchange-traded funds (ETFs) attempt to track this index and sub-indexes:

Index Fund


 * SPDR S&P MidCap 400 ETF (NYSE Arca: MDY)
 * Vanguard S&P Mid-Cap 400 ETF (NYSE Arca: IVOO)
 * iShares Core S&P Mid-Cap ETF (NYSE Arca: IJH)

Growth Index Fund


 * SPDR S&P 400 Mid Cap Growth ETF (NYSE Arca: MDYG)
 * Vanguard S&P Mid-Cap 400 Growth ETF (NYSE Arca: IVOG)
 * iShares S&P Mid-Cap 400 Growth ETF (NYSE Arca: IJK)

Value Index Fund


 * SPDR S&P 400 Mid Cap Value ETF (NYSE Arca: MDYV)
 * Vanguard S&P Mid-Cap 400 Value ETF (NYSE Arca: IVOV)
 * iShares S&P Mid-Cap 400 Value ETF (NYSE Arca: IJJ)

The SPDR fund was first, but the iShares fund is bigger; also they have different structures.

Versions[edit]
The "S&P 400" generally quoted is a price return index; there are also "total return" and "net total return" versions of the index. These versions differ in how dividends are accounted for. The price return version does not account for dividends; it only captures the changes in the prices of the index components. The total return version reflects the effects of dividend reinvestment. Finally, the net total return version reflects the effects of dividend reinvestment after the deduction of withholding tax.

Components[edit]
Main article: List of S&P 400 companies

See also[edit]

 * S&P 1500
 * S&P 500
 * S&P 600
 * Russell Midcap Index

References[edit]

 * 1) ^ Jump up to:a b
 * 2) ^
 * 3) ^
 * 4) ^ MDY - SPDR S&P MidCap 400 ETF State Street Global Advisors (SSgA)
 * 5) ^
 * 6) ^ iShares Core S&P Mid-Cap ETF (IJH): Overview iShares
 * 7) ^ Mid-Cap ETFs Find a Sweet Spot Yahoo Finance
 * 8) ^ S&P MidCap 400 Factsheet
 * 9) ^ https://us.spindices.com/indices/equity/sp-400

Categories:


 * S&P Dow Jones Indices
 * American stock market indices
 * Stock exchange stubs