Money Managers Praise S&P For New Float Adjusted Index Weightings

S&P is changing the way it weighs stocks in the S&P 500, S&P MidCap 400 and the S&P Small Cap 600.

Over the next 18 months, the capitalization weighted indexes will be weighted according to how much of a company stock is available to be sold to the public.

Managers are pleased, reasoning that the change reflects "reality". Companies with large chunks of insider holdings, such as Wal-Mart, United Parcel Service and Coca-Cola, will be most affected.

Source: Pensions & Investments