Different Large Cap Universe Results

Research
1

Just noticed something else kind of weird to me.

If I run the screen on the Large Cap Custom Universe you linked to above the smallest stock by Market Cap that I get back is BEPC:USA at 15,351.34

[url=https://www.portfolio123.com/app/universe/summary/265603?st=1&mt=7]https://www.portfolio123.com/app/universe/summary/265603?st=1&mt=7[/url]

BUT

If I run a screen using “Large Cap” as the selected Stock Universe, the smallest stock I get back has a Market Cap of 5,664.95.

[url=https://www.portfolio123.com/app/screen/summary/268669?mt=1]https://www.portfolio123.com/app/screen/summary/268669?mt=1[/url]

What is causing this difference?

Thanks,

Daniel

2

Hi Daniel,
The About page for the universe has some information including “MarketCap universes are reconstituted on the first week of each quarter”. This means that the predefined universe is rebuilt quarterly and remains static for that quarter. But the results of your screen using the rules would change daily. If you set the As Of Date to 1/1/22 for both your tests, you will see that the results match. The reason for this is so that the list of stocks contained in the predefined universe is somewhat stable. We don’t want stocks being added an dropped from the universe often.

3

That makes perfect sense. Thanks!