--- title: "PSE MidCap Index: Methodology" description: "PSE MidCap Index is maintained by Philippine Stock Exchange and covers Philippine mid-cap equity benchmark. How the index selects and weights its constituents." canonical: https://www.getswoopr.com/stocks/indexes/pse-midcap/ source: "Swoopr Investment: https://www.getswoopr.com" --- # PSE MidCap Index: What It Measures and How It Is Built ## Direct Answer > The PSE MidCap Index is a rule-based measurement of Philippine mid-cap equity benchmark, maintained by Philippine Stock Exchange. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets. ## What this index covers The PSE MidCap Index covers Philippine mid-cap equity benchmark, within the Philippines market. Philippine Stock Exchange defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number. The index name does not state a fixed company count, so the number of constituents follows the eligibility rules rather than a target. ## How constituents are weighted Free float adjusted market capitalization, using last traded price times outstanding shares times a free float factor between zero and one, divided by a divisor reset daily. The index is a fixed basket of 20 companies. The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little. ## What qualifies for inclusion The 20 largest companies by full market capitalization that pass the eligibility tests, excluding constituents of the PSEi. The same main board, free float and liquidity requirements as the PSEi apply, including the July 2026 revision to be applied from the February 2027 rebalancing. Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does. ## How long a listing must exist first A company must have been listed on the main board for at least 12 months during the review period. Early inclusion is possible after 6 months if it ranks high enough by market capitalization and passes the liquidity measures. A seasoning rule is why a large new listing does not appear in an index the week it starts trading. It is a deliberate lag, and it means an index can under-represent a fast-growing part of the market for months at a time. ## When the membership is revised A semi annual review with recomposition in mid February and mid August, announced about five trading days ahead. Free float levels are also reviewed each May and November. Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider. ## The rule that surprises people Insertion needs a rank of 17th or above, or 20th or above for four consecutive reviews, among eligible non-PSEi companies. Deletion needs a rank of 23rd or below, or 21st or below for four consecutive reviews. ## References - [Philippine Stock Exchange: Philippine Stock Exchange Policy on Index Management](https://documents.pse.com.ph/wp-content/uploads/sites/15/2026/07/CN-2026-0033B.pdf), as published 2026. Every rule described on this page is taken from this document. ## Current PSE MidCap Index constituents Philippine Stock Exchange publishes and licenses the PSE MidCap Index constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights. [Philippine Stock Exchange: official PSE MidCap Index page](https://www.pse.com.ph/stockMarket/indexInformation.html) ## Related reading - [All stock market indexes](https://www.getswoopr.com/stocks/indexes/): how indexes are built, weighted and revised. - [Emerging Markets indexes](https://www.getswoopr.com/stocks/indexes/emerging-markets/): others covering the same region. - [Index concentration](https://www.getswoopr.com/technical-analysis/market-concentration/index-concentration/): measuring how much of an index sits in its largest holdings. - [Index rebalancing and inclusion effects](https://www.getswoopr.com/stocks/corporate-actions-catalysts/index-rebalancing-and-inclusion-effects/): what happens to a stock when index membership changes. ## Frequently Asked Questions ### Who maintains the PSE MidCap Index? Philippine Stock Exchange maintains the PSE MidCap Index and publishes the methodology document that defines its eligibility and weighting rules. ### What does the PSE MidCap Index measure? It measures Philippine mid-cap equity benchmark. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself. ### Where can I see the current PSE MidCap Index constituents? Philippine Stock Exchange publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence. ## About the author The [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) writes Swoopr Investment's educational library, covering market structure, analysis methods and the mechanics behind the numbers investors read every day. 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