Define: S&P 600 Index

UK Accounting Glossary

Definition: S&P 600 Index


Full Definition of S&P 600 Index

The S&P 600 Index is an equity index representing 600 small-sized companies in various industries. The S&P 600 Index is also called the S&P SmallCap 600 Index. The S&P 600 Index was launched in 1994. The S&P 600 Index is a benchmark for evaluating the investment potential of profitable small companies. Although the S&P 600 Index is not as liquid as its counterpart, the Russell 2000 Index, the S&P 600 Index is more selective in which company can be included which results in an index with stronger and more viable companies. The S&P 600 Index represents about 3% of the entire U.S. equity market. The S&P 600 Index is weighted by market capitalization. The S&P 600 Index includes small-cap stocks with a market capitalization ranging from about US$300 million dollars to about US$2 billion. To be included in the S&P 600 Index, a company must be a US company with strong financials (i.e. as reported earnings must be positive for 4 quarters in a row). An S&P 600 Index company must have good liquidity. An S&P 600 Index company must also be an operating type of company (i.e. no holding companies for example but REITs are allowed). The S&P 600 index is calculated by Standard and Poor’s in accordance with published specifications. The S&P 600 Index is reconstituted on an as-needed basis by S&P economists, index experts, and members of the SP Index Committee. In 2005, Standard and Poor’s developed sub-indices to the S&P 600 Index. The S&P 600 sub-indices are part of the SP/Citigroup Style index series. The S&P 600 sub-indices are listed as S&P Composite 600/Citigroup growth and value indices and S&P Composite 600/Citigroup pure growth and pure value indices. Various Exchange-traded Funds (ETF) (i.e. iShares S&P SmallCap 600 Fund) and mutual funds offer investment vehicles to trade the S&P 600 Index.


Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
S&P 600 Index. Payroll & Accounting Heaven Ltd. April 04, 2020
Chicago Manual of Style (CMS):
S&P 600 Index. Payroll & Accounting Heaven Ltd. (accessed: April 04, 2020).
American Psychological Association (APA):
S&P 600 Index. Retrieved April 04, 2020, from website:

Definition Sources

Definitions for S&P 600 Index are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th February 2020.