| Field | Value | Source text | Reading (model) |
|---|---|---|---|
| G1 Scope, precedence and principles · 5 fields | |||
| Covered indices | Global S&P Dow Jones family of indices, many specialty indices, market capitalization-weighted indices | The float adjustment rules described here apply to the global S&P Dow Jones family of indices, as well as many specialty indices.Open p.3 ↗ |
The float adjustment rules apply to the global S&P Dow Jones family of indices and many specialty indices, but not to non-market-capitalization-weighted indices. |
| Precedence rule | Individual index methodologies govern regional exceptions and index-specific details not contained in this float adjustment methodology. | Since there may be regional exceptions to the general rules on float-adjustment, please refer to individual index methodologies for information that may not be contained in this document.Open p.3 ↗ |
Because regional exceptions may exist, users should refer to each index methodology for information not contained in this document. |
| Principles | representativeness of shares available to public market investors, Investability, consistency and uniformity across indices, float adjustment of market capitalization indices | With a float-adjusted index, the value of each constituent reflects the value estimated to be available to investors in the public markets.Open p.3 ↗ |
Float adjustment seeks to reflect shares available to investors, enhance index investability, and apply consistent, uniform rules across market capitalization indices. |
| Administrator | S&P Dow Jones Indices | September 2026 S&P Dow Jones Indices: Index MethodologyOpen p.1 ↗ |
The rules are issued by S&P Dow Jones Indices. |
| Rulebook version | September 2026 | September 2026 S&P Dow Jones Indices: Index MethodologyOpen p.1 ↗ |
The methodology is labeled as the September 2026 S&P Dow Jones Indices Index Methodology. |
| G2 Calculation and publication · 3 fields | |||
| Formula type | Divisor | The float-adjusted index is calculated: (P S IWF ) j j j j Index = (2) Divisor where Pj is the price of stock j, Sj is the total shares outstanding of stock j and IWFj is the investable weight factor.Open p.7 ↗ |
The float-adjusted index is calculated by summing each stock's price times total shares outstanding times its investable weight factor and dividing by the index divisor. |
| Precision | 0 percentage points | In most cases, Investable Weight Factors (IWFs) are reported to the nearest one percentage point.Open p.4 ↗ |
Investable weight factors are generally reported to the nearest one percentage point. |
| Publication channels | regular S&P Dow Jones Indices index data distribution | IWFs are provided with other index data as part of regular S&P Dow Jones Indices’ index data distribution.Open p.12 ↗ |
IWFs are distributed with other index data through S&P Dow Jones Indices' regular index data distribution. |
| G5 Shares, free float and weight factors · 12 fields | |||
| Strategic block minimum threshold | 5% | After adding up all O+D (as a group) and all 5% or greater holders deemed to be strategic holders as defined above, S&P Dow Jones Indices calculates an Investable Weight Factor (IWF) for each stock.Open p.4 ↗ |
S&P Dow Jones Indices applies a 5% minimum threshold for strategic blocks, subject to special treatment for officers and directors and regional exceptions. |
| Public float holders | depositary banks, pension funds, including government pension and retirement funds, mutual funds, ETF providers, investment funds, hedge funds and asset managers without direct board representation, investment funds of insurance companies, independent foundations not associated with the company | The following holders’ shares are generally considered part of public float:Open p.4 ↗ |
Depositary banks, pension funds, certain funds and asset managers without board representation, insurance-company investment funds, and independent foundations generally count as public float. |
| Equity like securities excluded from float | treasury stock, stock options, equity participation units, Warrants, preferred stock, convertible stock, Rights | These generally include treasury stock, stock options, equity participation units, warrants, preferred stock, convertible stock, and rights.Open p.4 ↗ |
Certain equity-like securities not included in total shares outstanding generally need not be considered when calculating available float. |
| Depositary receipt treatment | Trust shares used by investors outside the domicile are normally included in float unless the underlying holdings form a control block. | When shares are held in a trust to allow investors in countries outside the country of domicile, these shares are normally included in float.Open p.4 ↗ (not found verbatim in the PDF) |
ADRs, CDIs, Canadian exchangeable shares and similar arrangements are normally included in float, but underlying holdings that form a control block are excluded. |
| Share count basis | Total shares outstanding for the applicable market, share class, and laws or accounting principles; each multiple share class is float-adjusted separately. | The precise definition of shares outstanding or the share count depends on the specific market and the laws and accounting principles that apply.Open p.7 ↗ |
Float adjustment starts with total shares outstanding, whose precise definition depends on the market and applicable laws and accounting principles, and multiple share classes are adjusted individually. |
| Free float definition | Total shares outstanding less shares held by long-term strategic shareholders; available float shares are those available to investors. | The goal of float adjustment is to adjust each company’s total shares outstanding for long-term, strategic shareholders, whose holdings are not considered to be available to the market.Open p.4 ↗ |
Free float is the portion of total shares outstanding not held by long-term strategic shareholders and therefore estimated to be available to public market investors. |
| Restricted shares | officers and directors and related individuals whose holdings are publicly disclosed, private equity, venture capital and special equity firms, asset managers and insurance companies with direct board representation, shares held by another publicly traded company, holders of restricted shares, company-sponsored employee share plans, trusts, defined contribution plans, savings plans and investment plans, foundations or family trusts associated with the company, government entities, except government retirement or pension funds, sovereign wealth funds, individual 5% or greater stakeholders reported in regulatory filings | Shares held by the following types of shareholders are excluded regardless of whether the particular shareholder intends to exercise any form of control.Open p.4 ↗ |
Specified strategic and restricted shareholder groups are excluded from float regardless of the particular holder's intention to exercise control. |
| Free float sources | publicly available information, annual report, regulatory filings, proxy statements, Form 10-K, company officials when public disclosure is inadequate or unavailable, additional industry sources when public disclosure is inadequate or unavailable | S&P Dow Jones Indices gathers share ownership data for each company in the coverage universe using publicly available information.Open p.4 ↗ |
S&P Dow Jones Indices uses public disclosures such as annual reports, regulatory filings, proxies and 10-Ks, and may consult company officials or industry sources when public information is inadequate. |
| Free float factor | Method: Free float; Formula: available float shares / total shares outstanding; Rounding: nearest one percentage point in most cases; Annual review round up threshold: 0.96 | For each stock an Investable Weight Factor (IWF) is calculated: IWF = (available float shares)/(total shares outstanding) (1)Open p.7 ↗ |
The investable weight factor equals available float shares divided by total shares outstanding; factors are generally reported to the nearest percentage point and IWFs of 0.96 or above are rounded to 1.00 at the annual review. |
| Share change threshold | Share change minimum percent: 5; Iwf absolute change minimum percent: 5 | At the quarterly review, IWF changes are implemented if there is a share change of at least 5% of total current shares outstanding and if the adjusted IWF absolute change is at least 5%, with IWF adjustments limited to the extent necessary to help reflect the corresponding share change.Open p.11 ↗ |
At quarterly reviews, an IWF change is implemented when the share change is at least 5% and the adjusted IWF changes by at least 5 percentage points, with adjustments limited to the extent needed to reflect the share change. |
| Free float update timing | annual review, quarterly review when thresholds are met, mandatory corporate action treatment, accelerated non-mandatory corporate action treatment, quarterly foreign ownership limit review on a best-effort basis | Investable Weight Factors (IWFs) are reviewed annually based on the most recently available data filed with various regulators and exchanges.Open p.11 ↗ |
IWFs are reviewed annually, may be changed quarterly under the stated thresholds, are updated for certain corporate actions, and foreign ownership limits are reviewed quarterly on a best-effort basis. |
| Foreign ownership limit | The final IWF is the minimum of one minus total strategic holdings and the applicable statutory foreign ownership limit; limits are applied mainly where index users include significant foreign investors and are not applied to specified domestic-user indices. | The final IWF is the minimum of one minus the sum of all strategic holdings or the statutory foreign ownership limit.Open p.7 ↗ |
Where applied, foreign ownership limits cap the IWF at the statutory aggregate foreign ownership capacity, and regional or global indices use the appropriate limit while domestic-user indices generally do not apply limits. |
| G8 Governance, changes and termination · 4 fields | |||
| Governance reference document | S&P Dow Jones Indices’ Index Governance Policies Methodology | For more information on Index Governance, please refer to the S&P Dow Jones Indices’ Index Governance Policies Methodology.Open p.13 ↗ |
Further index governance information is contained in the S&P Dow Jones Indices Index Governance Policies Methodology. |
| Oversight body | S&P Dow Jones Indices Index Committee | Questions of interpretation or possible exceptions to float adjustment rules are considered by an S&P Dow Jones Indices Index Committee.Open p.13 ↗ |
An S&P Dow Jones Indices Index Committee considers questions of interpretation or possible exceptions to the float adjustment rules. |
| Discretion points | interpreting float adjustment rules, granting possible exceptions to float adjustment rules, choosing treatment when applying the methodology requires an exception | Questions of interpretation or possible exceptions to float adjustment rules are considered by an S&P Dow Jones Indices Index Committee.Open p.13 ↗ |
The Index Committees may interpret the rules and make exceptions to the methodology when the need arises. |
| Disclosure channels | client notice when treatment differs from general or supplemental rules, regular S&P Dow Jones Indices index data distribution | In any scenario where the treatment differs from the general rules stated in this document or supplemental documents, clients will receive sufficient notice, whenever possible.Open p.13 ↗ |
Clients receive notice whenever possible when treatment differs from the stated rules, and IWFs are distributed through the regular S&P Dow Jones Indices index data service. |
Open points · 10Model-written, for reference
- 1No specific effective date for the September 2026 methodology was stated.
- 2No divisor adjustment formula or list of divisor-adjustment events was stated beyond identifying the divisor in the index formula.
- 3No index calculation frequency, calculation times, publication currency, or published index-level decimal precision was stated.
- 4No price return, gross total return, net total return, dividend reinvestment, or withholding tax basis rules were stated.
- 5No default weight capping procedure was stated.
- 6No fixed methodology review frequency, external consultation process, material-change definition, formal amendment procedure, cessation or termination procedure, complaints procedure, or usage restrictions were stated.
- 7Not coveredG3 Prices and market data: not covered by this edition
- 8Not coveredG4 Corporate events: not covered by this edition
- 9Not coveredG6 Disruption, emergencies and corrections: not covered by this edition
- 10Not coveredG7 Review and constituent changes: not covered by this edition
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