2020 was a strange year for the global economy, however one soaring index has managed to take the spotlight: the S&P Completion.
Wall Street has shed light on this index especially after Tesla joined in December rising 14% on its announcement date. It also doubled the gains of the S&P Completion.
The latter is traditionally associated with small and mid-cap stocks but came into the public eye since Tesla reached gains of 665% in 2020.
Another sign of good health is that S&P Global has acquired data and analytics provider IHS Markit in a super $44 billion deal.
What is S&P Completion?
S&P Completion is an index for small and and mid-sized companies. Earlier on in December, it was called by Wall Street Journal ”The Soaring Stock Index You’ve Never Heard Of” .
The S&P Dow Jones indices defines it as “The index covers approximately 3000 constituents, offering investors broad exposure to mid, small, and micro cap companies” .
So far, the first week of January has brought amazing numbers: “The S&P MidCap 400® increased 6.37% for the month and increased 11.81% YTD. The S&P SmallCap 600® returned 8.16% in December and 9.57% YTD.”, says the latest report published by Standard and Poor’s.
Read on Alvexo: “Aramco and Tesla Redefine What Stock Price Means”
Tesla Gentrified S&P Completion
S&P Completion has also come into light “thanks to Tesla”, analyses the Wall Street Journal.
The index was up 33%, thus doubling the gain of the traditional S&P 500, mostly because Tesla’s shares increased by 665%.
The S&P Completion Index was up 31% this year, doubling the gain of the S&P 500, thanks to Tesla. https://t.co/JwMwgUtWHF pic.twitter.com/1RTJdq177P
— Nigel Nagassar (@NigelNagassar) December 26, 2020
IHS Markit, the X Factor
2021 looks like it will be an even bigger year for the Completion index.
A few days ago, it was confirmed that the index will merge with the world’s leading data and analytics company IHS Markit for $44 billion, reports the Trade News.
The transaction will take effect during the second semester of 2021.
“This merger increases scale while rounding out our combined capabilities and accelerates and amplifies our ability to deliver customers the essential intelligence needed to make decisions with conviction,” said current CEO Douglas Peterson.
The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.