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S&P MidCap 400 Index

S&P MidCap 400 Index

What is 'S&P MidCap 400 Index'

This Standard & Poor's index serves as a barometer for the U.S. mid-cap equities sector and is the most widely followed mid-cap index in existence. To be included in the index, a stock must have a total market capitalization that ranges from roughly $750 million to $3 billion dollars. Stocks in this index represent household names from all major industries including energy, technology, healthcare, financial and manufacturing.

Explaining 'S&P MidCap 400 Index'

Like many other stock market indexes, the S&P 400 MidCap Index is a value-weighted index, meaning that the stocks with the largest market capitalization have the most significant impact on the movement of the index. Similarly, smaller movements in the smallest companies in the index have virtually no effect on the overall movement of the index. This is an important fact to remember for investors seeking diversification, as market-cap weighted index funds primarily expose an investor to the movements of a small group of stocks, despite the broad name of the index itself.


Further Reading


Index futures trading and stock return volatility: Evidence from the introduction of mid cap 400 index futures
onlinelibrary.wiley.com [PDF]
… of 4,035 futures contracts, higher than the first-day trading volume of 3,963 S&P 500 contracts … control stocks, and all other medium-cap stocks, as substitutes for the Mid- Cap index stocks … the observed decrease in volatility for both the control stocks and the MidCap stocks may …

Arbitrage and valuation in the market for standard and poor's depositary receiptsArbitrage and valuation in the market for standard and poor's depositary receipts
www.jstor.org [PDF]
… of 4,035 futures contracts, higher than the first-day trading volume of 3,963 S&P 500 contracts … control stocks, and all other medium-cap stocks, as substitutes for the Mid- Cap index stocks … the observed decrease in volatility for both the control stocks and the MidCap stocks may …

Understanding the shadow impacts of investment and divestment decisions: Adapting economic input–output models to calculate biophysical factors of financial …Understanding the shadow impacts of investment and divestment decisions: Adapting economic input–output models to calculate biophysical factors of financial …
www.sciencedirect.com [PDF]
… of 4,035 futures contracts, higher than the first-day trading volume of 3,963 S&P 500 contracts … control stocks, and all other medium-cap stocks, as substitutes for the Mid- Cap index stocks … the observed decrease in volatility for both the control stocks and the MidCap stocks may …

Asset management fees and the growth of financeAsset management fees and the growth of finance
www.aeaweb.org [PDF]
… of 4,035 futures contracts, higher than the first-day trading volume of 3,963 S&P 500 contracts … control stocks, and all other medium-cap stocks, as substitutes for the Mid- Cap index stocks … the observed decrease in volatility for both the control stocks and the MidCap stocks may …

Performance evaluation and self-designated benchmark indexes in the mutual fund industryPerformance evaluation and self-designated benchmark indexes in the mutual fund industry
www.sciencedirect.com [PDF]
… of 4,035 futures contracts, higher than the first-day trading volume of 3,963 S&P 500 contracts … control stocks, and all other medium-cap stocks, as substitutes for the Mid- Cap index stocks … the observed decrease in volatility for both the control stocks and the MidCap stocks may …

Modelling volatility using high, low, open and closing prices: evidence from four S&P indicesModelling volatility using high, low, open and closing prices: evidence from four S&P indices
researchportal.port.ac.uk [PDF]
… of 4,035 futures contracts, higher than the first-day trading volume of 3,963 S&P 500 contracts … control stocks, and all other medium-cap stocks, as substitutes for the Mid- Cap index stocks … the observed decrease in volatility for both the control stocks and the MidCap stocks may …

Evaluation of the Federal Reserve's financial-crisis timelineEvaluation of the Federal Reserve's financial-crisis timeline
www.sciencedirect.com [PDF]
… of 4,035 futures contracts, higher than the first-day trading volume of 3,963 S&P 500 contracts … control stocks, and all other medium-cap stocks, as substitutes for the Mid- Cap index stocks … the observed decrease in volatility for both the control stocks and the MidCap stocks may …

Design of a financial portalDesign of a financial portal
dl.acm.org [PDF]
… of 4,035 futures contracts, higher than the first-day trading volume of 3,963 S&P 500 contracts … control stocks, and all other medium-cap stocks, as substitutes for the Mid- Cap index stocks … the observed decrease in volatility for both the control stocks and the MidCap stocks may …

Predictability in hedge fund returns (corrected)Predictability in hedge fund returns (corrected)
www.tandfonline.com [PDF]
… of 4,035 futures contracts, higher than the first-day trading volume of 3,963 S&P 500 contracts … control stocks, and all other medium-cap stocks, as substitutes for the Mid- Cap index stocks … the observed decrease in volatility for both the control stocks and the MidCap stocks may …



Q&A About S&P MidCap 400 Index


What does the index represent?

The index represents household names from all major industries including energy, technology, healthcare, financial and manufacturing.

What are some important facts about this index?

This Standard & Poor's index is value-weighted meaning that stocks with larger market capitalization have more significant impact on movement in the overall price than smaller companies do. Similarly, smaller movements in smallest companies have virtually no effect on overall movement in price for this particular stock market index.

What is the S&P MidCap 4 Index?

The S&P MidCap 4 Index is a U.S. mid-cap equities sector barometer that represents stocks with market capitalizations ranging from roughly 75 million to 3 billion dollars.

How can investors gain diversification through this index?

Investors seeking diversification can use market-cap weighted index funds to expose themselves to the movements of a small group of stocks despite the broad name of an index itself.

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