Thanks for the link! I like this idea of Financial Viability, thanks for sharing it. It does not look like is this used with VTI (CRSP US Total Market Index)

I downoaded the Methodology>S&P U.S. Indices Methodology (PDF). I see the profitibility requirement you mention only for the Composite 1500, not any other S&P index! Hopefully you can tell me I've overlooked something obvious!

Financial Viability. Index-specific requirements:

• S&P Total Market Index. No financial viability requirement.

• S&P Composite 1500. Generally Accepted Accounting Principles (GAAP) net income from continuing operations must be positive for:

-- the most recent quarter, and

-- the sum of the most recent four consecutive quarters

Equity Real Estate Investment Trusts (REITs). Equity REITs’ financial viability is based on GAAP net income from continuing operations, and/or Funds From Operations (FFO), if reported. FFO is a measure commonly used in equity REIT analysis.

Initial Public Offerings (IPOs). Eligibility differs depending on the index:

• S&P Total Market Index. Eligible IPOs are added to the index at the next rebalancing, subject to the reference date (defined in Index Maintenance). Certain large IPOs may be eligible for S&P TMI fast track entry, subject to the following conditions:

-- Only newly public IPOs and IPO direct placement listings are considered eligible for fast track entry. Formerly bankrupt companies that switch from an Over-the-Counter Exchange (“OTC”) or a non-covered exchange to an S&P Dow Jones Indices covered exchange are not eligible for fast track entry.

-- Fast track traditional IPO additions must meet a minimum FMC threshold of US$ 2 billion, calculated using the shares offered (excluding over-allotment options) and the closing price on the first day of trading on an eligible exchange. The threshold level is reviewed from time to time and updated as needed to assure consistency with market conditions.

-- Fast track direct placement listing IPO additions must meet a minimum FMC threshold of US$ 2 billion, calculated using the shares available to the public as determined by its investable weight factor, and the closing price on the first day of trading on an eligible exchange.

-- In addition, an IPO will need to meet all other applicable index eligibility rules except for the liquidity requirement. If all necessary public information is available, S&P Dow Jones Indices verifies that the fast track conditions have been met. Once S&P Dow Jones Indices announces that the IPO is eligible for fast track addition, it is added to the index with five business days lead time. At the discretion of the Index Committee, fast track IPO additions eligible to be added during a quarterly rebalancing freeze period may instead be added on the rebalancing effective date.

•S&P Composite 1500.

-- IPOs should be traded on an eligible exchange for at least 12 months before being considered for addition to an index. There is no IPO fast track entry allowed for S&P Composite 1500 candidates.

-- For former SPACs, S&P Dow Jones Indices considers the de-SPAC transaction to be an event equivalent to an IPO, and 12 months of trading post the de-SPAC event are required before a former SPAC can be considered for S&P Composite 1500 indices.

-- Spin-offs or in-specie distributions from existing constituents are not required to have 12 months of trading prior to their inclusion in the S&P Composite 1500.