The Rising Influence of Rising Affluence

[DewDiligence]

Inclusion in the S&P 500 is based primarily on market cap, not on share-price performance. The rough lower bound for inclusion is $4B, so CLF has some risk of being removed from the index since its current market cap is only slightly more than $4B. However, for a stock to be removed from the S&P 500 for low market cap, there has to be another stock with a higher market cap to replace the removed stock—i.e. merely falling below the $4B level does not automatically result in removal.

For further details, see http://us.spindices.com/documents/methodologies/methodology-sp-us-indices.pdf .