Direct Answer
The SMLL Small Cap Index is a rule-based measurement of small-cap companies listed on B3 excluding the IBrX 100 constituents, maintained by B3. 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 SMLL Small Cap Index covers small-cap companies listed on B3 excluding the IBrX 100 constituents, within the Brazil market. B3 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
Constituents are weighted by the free float market value of the share class held in the portfolio. The methodology sets no separate company or liquidity weight cap.
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
Shares and units of B3 listed companies, excluding BDRs and companies in judicial or extrajudicial recovery or special listing situations. An asset must sit outside the group that makes up 85 percent of the market value of all cash market (round lot) companies, be within 99 percent of cumulative tradability ratio (IN), trade in 95 percent of sessions, and not be a penny stock.
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
Tests look back over the validity period of the three previous portfolios. An asset with a public offering in that window can qualify without full history if the offering closed before the prior rebalancing, it has traded in 95 percent of sessions since trading began, and it meets the size, tradability and penny stock tests.
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
Which companies are eligible for the definitive four month portfolio is decided from the calculations made at the second preview of that portfolio. An asset moved to a special listing situation is removed at the end of its first day in that status.
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
Entry and exit thresholds differ: an asset must fall outside the top 85 percent of market value to enter, but is removed only once it falls inside the group making up 82 percent, which keeps borderline companies in place.
References
- B3: B3 Metodologia do Indice Small Cap (SMLL), as published 2020. Every rule described on this page is taken from this document.
Current SMLL Small Cap Index constituents
B3 publishes and licenses the SMLL Small Cap Index constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights.
Related reading
- All stock market indexes: how indexes are built, weighted and revised.
- Emerging Markets indexes: others covering the same region.
- Index concentration: measuring how much of an index sits in its largest holdings.
- Index rebalancing and inclusion effects: what happens to a stock when index membership changes.
Frequently Asked Questions
Who maintains the SMLL Small Cap Index?
B3 maintains the SMLL Small Cap Index and publishes the methodology document that defines its eligibility and weighting rules.
What does the SMLL Small Cap Index measure?
It measures small-cap companies listed on B3 excluding the IBrX 100 constituents. 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 SMLL Small Cap Index constituents?
B3 publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence.