Garmin To Be Added To S&P 500

By
December 06, 2012
Share:

Related ETFs

Ticker Fund name
SPYSPDR S&P 500
Related ETF Lists
Large Cap ETFs

 

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 Donnelley.

No ETFs 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 sector.

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.

 

ETF.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

International equity funds like 'IEMG' led inflows on Monday, May 18, as rising markets lifted U.S.-listed ETF assets to a record $2.174 trillion.

'SPY' and 'GLD' paced SSgA's issuer-leading outflows on Monday, May 18, as rising markets lifted total U.S.-listed ETF assets to a record $2.174 trillion.

ETF.COM ANALYST BLOGS

By Olly Ludwig

Yields will one day head higher, so is it time to get bond exposure outside the U.S.?

By Rachael Revesz

Stop dancing around the subject, call women ‘women’ and let’s be a more visible part of this industry.

By Olly Ludwig

It’s no secret that hedge funds love ETFs, but what’s less appreciated is that their love of ETFs will likely spell their demise.

By Olly Ludwig

Yes, bond yields are ticking higher these days, but it’s important to keep the whole yield-curve picture in mind.