Garmin To Be Added To S&P 500

By
Cinthia Murphy
December 06, 2012
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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 DAILY DATA

Investors plowed money into currency-hedged equity funds like ‘HEDJ’ and ‘DBEF’ on Wednesday, March 4, while yanking assets out of sundry bond funds, such as ‘HYG.’ Total U.S.-listed ETF assets dropped to $2.084 trillion as a market pullback offset net inflows.

Sizable outflows from various iShares bond funds paced that firm’s outflows on Wednesday, March 4. Total U.S.-listed ETF assets ended the day at $2.084 trillion.

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