Direct Answer
The S&P/BVL Peru Select is a rule-based measurement of selected liquid Peruvian equities listed on the Lima Stock Exchange, maintained by S&P Dow Jones Indices/BVL. 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 S&P/BVL Peru Select covers selected liquid Peruvian equities listed on the Lima Stock Exchange, within the Peru market. S&P Dow Jones Indices/BVL 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
The index is float-adjusted market capitalization weighted at each rebalancing, subject to a cap of 13% on any single stock and a cap of 40% on any single sector.
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
Composition is derived from the S&P/BVL Peru General Index. Stocks need float-adjusted market capitalization of at least PEN 200 million (PEN 100 million for current constituents) and median daily value traded of at least PEN 250,000 (PEN 125,000 for current constituents) over the prior three and six months. They must have traded on at least 80% of trading days in those periods (70% for current constituents), and companies registered as "Juniors" are not eligible.
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
Companies must have a trading history of at least six months. A significantly sized IPO must be among the top five companies in the market by estimated float-adjusted market capitalization to have that criterion waived, and other IPOs must meet all criteria and are added at the subsequent rebalancing.
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
The index is rebalanced twice a year, effective after the close on the third Friday of March and September, and reweighted quarterly after the close on the third Friday of June and December. The reference date for composition changes is five weeks before the rebalancing date.
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
The index primarily uses each company's local listing, but a North American listing (NYSE, Nasdaq or Toronto Stock Exchange) may be used if it is more liquid. The included listing can change if the six-month MDVT of the non-index listing is twice that of the included one. Each company is represented once, by its most liquid share class.
References
- S&P Dow Jones Indices/BVL: S&P Dow Jones Indices, S&P/BVL Peru Indices Methodology (S&P/BVL Peru Select Index section), as published 2023. Every rule described on this page is taken from this document.
Current S&P/BVL Peru Select constituents
S&P Dow Jones Indices/BVL publishes and licenses the S&P/BVL Peru Select constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights.
S&P Dow Jones Indices/BVL: official S&P/BVL Peru Select page
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 S&P/BVL Peru Select?
S&P Dow Jones Indices/BVL maintains the S&P/BVL Peru Select and publishes the methodology document that defines its eligibility and weighting rules.
What does the S&P/BVL Peru Select measure?
It measures selected liquid Peruvian equities listed on the Lima Stock Exchange. 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 S&P/BVL Peru Select constituents?
S&P Dow Jones Indices/BVL publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence.