![IndexFunds.com Staff]( "IndexFunds.com Staff")
IndexFunds.com Staff
S&P 500 Index Changes in March
IndexFunds.com Staff
Monday, April 02, 2001
Recently, we took a not-so-serious look at the prospects for front-running additions to the S&P 500 to exploit the "index effect," where demand can push up a stock's price when it enters an index. This time, let's take a look back and see what happened to the index in March.
Standard & Poor's (S&P) announced three additions to the S&P 500 in March. Not surprisingly, technology experienced the biggest decline of any sector for the month, losing 1.29%.
|
S&P 500 Sector Weightings
|
| Sector |
End of March |
End of February |
Weight change |
| Financials |
17.64%
|
17.20%
|
0.44%
|
| Utilities |
4.26%
|
3.90%
|
0.36%
|
| Energy |
6.83%
|
6.50%
|
0.33%
|
| Consumer Cyclicals |
8.63%
|
8.30%
|
0.33%
|
| Consumer Staples |
12.92%
|
12.80%
|
0.12%
|
| Health Care |
13.41%
|
13.30%
|
0.11%
|
| Transportation |
0.76%
|
0.70%
|
0.06%
|
| Basic Materials |
2.52%
|
2.50%
|
0.02%
|
| Communication Services |
6.12%
|
6.10%
|
0.02%
|
| Capital Goods |
8.71%
|
9.20%
|
-0.49%
|
| Technology |
18.21%
|
19.50%
|
-1.29%
|
Source: Merrill Lynch Equity Derivatives Strategy Department
For good measure, let's check out what happened in S&P's mid- and small-cap indexes.
Four companies were added to the S&P MidCap 400 index last month.
|
S&P MidCap 400 Sector Weightings
|
| Sector |
End of March |
End of February |
Weight change |
| Financials |
16.96%
|
15.27%
|
1.69%
|
| Utilities |
8.75%
|
7.56%
|
1.19%
|
| Basic Materials |
4.24%
|
4.03%
|
0.21%
|
| Capital Goods |
6.83%
|
6.63%
|
0.20%
|
| Consumer Staples |
8.10%
|
7.98%
|
0.12%
|
| Energy |
7.51%
|
7.43%
|
0.08%
|
| Transportation |
2.07%
|
2.04%
|
0.03%
|
| Communication Services |
1.48%
|
1.47%
|
0.01%
|
| Health Care |
11.06%
|
11.21%
|
-0.15%
|
| Consumer Cyclicals |
14.87%
|
15.14%
|
-0.27%
|
| Technology |
18.11%
|
21.23%
|
-3.12%
|
Source: Merrill Lynch Equity Derivatives Strategy Department
Twelve companies were added to the S&P SmallCap 600 index. Again, technology experienced the biggest decline of any sector in March. Unlike the two indexes examined above, however, technology is not the most heavily weighted sector in the SmallCap 600.
|
S&P SmallCap 600 Sector Weightings
|
| Sector |
End of March |
End of February |
Weight change |
| Energy |
7.65%
|
6.80%
|
0.85%
|
| Consumer Cyclicals |
19.44%
|
18.99%
|
0.45%
|
| Utilities |
4.49%
|
4.14%
|
0.35%
|
| Consumer Staples |
10.03%
|
9.74%
|
0.29%
|
| Health Care |
11.41%
|
11.20%
|
0.21%
|
| Basic Materials |
4.55%
|
4.44%
|
0.11%
|
| Communication Services |
0.22%
|
0.20%
|
0.02%
|
| Transportation |
2.82%
|
2.83%
|
-0.01%
|
| Financials |
11.64%
|
12.11%
|
-0.47%
|
| Capital Goods |
12.51%
|
13.04%
|
-0.53%
|
| Technology |
15.23%
|
16.50%
|
-1.27%
|
Source: Merrill Lynch Equity Derivatives Strategy Department
|