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ETF Specialist

Untangling How Index Providers Break the Market Down by Size

One size does not fit all when it comes to where index providers draw the lines to segment the U.S. equity market by market capitalization.

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A version of this article appeared in the November 2017 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here

Index providers take different approaches to partitioning the U.S. equity market by size. S&P Dow Jones Indices divvies up market size segments by rank ordering stocks by market capitalization and assigning a fixed number of stocks to its large- (S&P 500), mid- (S&P MidCap 400), and small-cap (S&P SmallCap 600) size segments.

Adam McCullough has a position in the following securities mentioned above: VTI. Find out about Morningstar’s editorial policies.