What Is the S&P/Citigroup Broad Market Index (BMI) Global?
S&P/Citigroup Broad Market Index (BMI) Global is a market capitalization-weighted index maintained by Standard and Poor's (S&P) providing a broad measure of the global equities markets ex-U.S. stocks. The S&P/Citigroup BMI Global includes approximately 9,000 companies in more than 52 countries covering both developed and emerging markets, but excluding U.S. stocks.
The index encompasses both of the S&P Developed BMI and the S&P Emerging BMI. The S&P/Citigroup BMI Global Ex-US, which is sometimes simply referred to as the "BMI", should not be confused with either the Body Mass Index (BMI) weight calculation or Broadcast Music, Inc (BMI), the music licensing agency, nor the Bitcoin Misery Index (BMI).
- The S&P Global BMI (Broad Market Index) comprises the S&P Developed BMI and S&P Emerging BMI.
- It is a comprehensive, rules-based index measuring stock market performance globally, excluding the U.S.
- With approximately 9,000 stocks, the index is quoted simultaneously in U.S. dollars, euros, as well as in CAD, GBP, JPY, LCL, NZD, and AUD.
Understanding the S&P/Citigroup Broad Market Index (BMI) Global
S&P/Citigroup Broad Market Index (BMI) Global is a broad-based index of global equities, excluding U.S.-based companies, and maintained by Standard and Poor’s (S&P). The index contains “all publicly listed equities with float-adjusted market values of US$ 100 million or more” that also meet a set of minimum median daily trading rules, currently that it has a minimum of US $50 million value traded over the past 12 months.
The index was launched on December 31, 1992, with its first value date on December 29, 1994. It is a weighted fund, by float-adjusted market capitalization, and is rebalanced every September with IPO updates and share changes in March, June and December. Approximately half the constituent companies are from the United States, with the next largest number of constituent companies from Japan. A country will be eligible for inclusion in the index if it has float-adjusted market capitalization of US$1 billion or more and its market capitalization weight is at least 40 basis points in either the emerging market or developed world indexes.
In addition to the financial eligibility criteria, the S&P Dow Jones Indices determine which countries are eligible or ineligible for inclusion in the fund.
The company eligibility criteria of market capitalization of U.S. $100 million or more and liquidity of a 12-month median value traded ratio (MVTR) along with a 6-month MVTR, which are different for companies from emerging countries and developed countries, also applies to IPOs, which can be added every quarter. IPOs may be added after they have three months of trading data, and trading value is annualized to determine if the volume renders them eligible for inclusion in the fund. All publicly-traded share classes may be included, with each share class float-adjusted.
The following types of securities are not eligible for the fund: fixed-dividend shares, investment trusts, unit trusts, mutual fund shares, business development companies, closed-end funds, convertible bonds, equity warrants, Limited Partnerships and preferred stock that provides a guaranteed fixed return.