S&P 100

S&P 100
Name	S&P 100
Type	Stock market index
Owner	S&P Dow Jones Indices
Inception	1983
Constituents	100
Capitalization	Large-cap
Related	S&P 500, S&P 400, Dow Jones Industrial Average

S&P 100 The S&P 100 is a stock market index comprising 100 leading large-cap companies drawn from the broader S&P 500, representing major U.S. and multinational firms. Constituent selection emphasizes liquidity and sector leadership, and the index serves as a benchmark for institutional investors, exchange-traded funds, and options markets such as those traded on the Chicago Board Options Exchange and the NYSE Arca. It is maintained by S&P Dow Jones Indices and used alongside benchmarks like the Dow Jones Industrial Average and the NASDAQ-100 for performance comparison.

Overview

The index targets multinational blue-chip firms that are often components of the S&P 500, Russell 1000, and listed on exchanges such as the New York Stock Exchange and the NASDAQ Stock Market. Constituents are selected for market capitalization and tradability by S&P Dow Jones Indices committees that include representatives from Standard & Poor's and McGraw-Hill history. The S&P 100 is widely used in derivative markets including options on the Chicago Board Options Exchange and in passive vehicles like ETFs managed by firms such as BlackRock and Vanguard Group.

History and development

The index was launched in 1983 during a period of financial innovation involving institutions like the Chicago Mercantile Exchange and the Options Clearing Corporation. Over time methodology updates were influenced by regulatory developments at the Securities and Exchange Commission and market structure changes at exchanges including the NYSE Arca and the NASDAQ OMX Group. Corporate events involving firms such as General Electric, ExxonMobil, and Microsoft have triggered reconstitutions and highlighted governance practices observed by entities like the Federal Reserve and U.S. Treasury Department during episodes including the 2008 financial crisis and the Dot-com bubble.

Composition and eligibility criteria

Constituents are large-cap companies that also appear in the S&P 500 and meet criteria set by S&P Dow Jones Indices. Eligibility factors include float-adjusted market capitalization, liquidity measured against benchmarks used by the New York Stock Exchange and Nasdaq, and a public float requirement influenced by listings like those of Apple Inc., Alphabet Inc., and Amazon. Committee decisions consider corporate actions from firms such as Berkshire Hathaway, JPMorgan Chase, and Johnson & Johnson and adhere to index governance practices similar to those of FTSE Russell.

Index methodology and weighting

The index is float-adjusted market-capitalization weighted, a methodology shared with the S&P 500 and contrasted with price-weighted indices like the Dow Jones Industrial Average. Weighting adjustments reflect corporate actions from companies such as Walmart, Procter & Gamble, Intel Corporation, and Visa Inc.. Rebalancing and reconstitution events are governed by rules overseen by the S&P Dow Jones Indices committee, with influences from trading venues including the New York Stock Exchange and regulations from the Securities and Exchange Commission. The methodology affects derivative pricing on venues such as the Cboe Global Markets.

Performance and market impact

Historically, the index’s performance tracks large-cap U.S. market dynamics seen in episodes involving BlackRock, Goldman Sachs, Morgan Stanley, and Citigroup. During market stress events such as the 2008 financial crisis and the COVID-19 pandemic, reallocations among constituents including Tesla, Inc., Meta Platforms, Inc., and Netflix affected sector tilts and volatility measures used by institutions like the International Monetary Fund and Bank for International Settlements. The index is a reference for passive investment flows into ETFs from issuers such as State Street Corporation and Vanguard, and it influences capital allocation decisions by asset managers like Fidelity Investments.

Notable constituents and sector representation

Constituents typically include household names from technology, financials, healthcare, and consumer sectors such as Apple Inc., Microsoft, Amazon, Alphabet Inc., Berkshire Hathaway, JPMorgan Chase, Johnson & Johnson, Pfizer, Walmart, Procter & Gamble, Visa Inc., Mastercard, ExxonMobil, Chevron, Nike, Inc., Coca-Cola, PepsiCo, Intel Corporation, Cisco Systems and Oracle Corporation. Sector representation often mirrors classifications by Industry Classification Benchmark and Global Industry Classification Standard, affecting allocations used by pension funds such as the California Public Employees' Retirement System and sovereign funds like those of Norway.

Related indices and investment products

The index is closely related to the S&P 500, S&P 400, S&P SmallCap 600, and international benchmarks maintained by MSCI and FTSE Russell. Investment products tracking the index include ETFs and mutual funds from issuers like iShares (BlackRock), Vanguard Group, and ProShares, as well as options and structured products traded on Cboe Global Markets and cleared through the Options Clearing Corporation. Benchmarks and derivatives tied to the index are used by institutional investors including Pension Benefit Guaranty Corporation and asset managers such as BlackRock and State Street Global Advisors.

Category:American stock market indices