Garmin Ltd., the developer and manufacturer of global
positioning devices, will be added to the S&P 500 Index after
the close on Dec. 11, replacing commercial printer RR
currently hold significant exposure to Garmin, but its inclusion in
the S&P 500 would propel it into several funds, including the
$110.64 billion SPDR S&P 500 ETF (NYSEArca:SPY), the largest
ETF in the world.
Switzerland-based Garmin is classified under the Global Industry
Classification Standard as a consumer discretionary company, and
11.4 percent of the S&P 500 is currently tied to that
Interestingly, Garmin is the second consumer discretionary name
to be added to the S&P 500 in less than a month. On Nov. 30,
S&P Dow Jones Indices added Dollar General, another consumer
discretionary company, to the index.
Like Garmin, Dollar General also replaced an industrial-sector
company, when it took over Cooper Industries' spot, which was
vacated due to an acquisition of the firm.
RR Donnelley, too, is part of the industrials sector.
Industrials represent 10.1 percent of the index.
RR Donnelley Moves Into Midcap Index
Chicago-based RR Donnelley, meanwhile, is being added to the
S&P MidCap 400 Index, taking Medicis Pharmaceutical's spot, as
that firm's acquisition by Valeant Pharmaceuticals International
concludes around that same date.
"R.R. Donnelley's market cap is more representative of the
mid-cap market space," S&P Dow Jones said in a press release.
The S&P 500 Footprint
In all, more than $4.8 trillion is benchmarked to the S&P
500, with index assets representing about $1.1 trillion of that
total, according to data provided by S&P Dow Jones.
To qualify for inclusion in the S&P 500 Index, companies
must have a minimum unadjusted market capitalization of $4 billion,
as well as meet liquidity, price, public float and financial
viability requirements, among other criteria, according to the
S&P Dow Jones Indices website.
Changes to the index are made "as needed, with no annual or
semi-annual reconstitution," the company said on its website.
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