Tag Archives: value
Is It Value? Is It Growth? The International Financials Sector Can Now Be Both
The Financials sector has traditionally been categorized as value (i.e., stocks considered undervalued but with stable fundamentals) instead of growth (i.e., stocks with higher valuations but that are expected to grow faster than the market). Historical data supported this perception until recently (see Exhibit 1). By the end of May 2026, the weight gap for…
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Exploring Growth at a Reasonable Price: S&P/ASX 200 GARP Index
What innovative strategies are market participants increasingly exploring to measure growth? S&P DJI’s Jason Ye sits down with Andrew Geoghegan from ausbiz to discuss how GARP, or growth at a reasonable price, is an approach that is gaining traction in the Australian market.
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Harnessing the Power of Multiple Factors: Inside the S&P 500 Quality, Value & Momentum Multi-Factor Index
Single-factor indices have historically outperformed over the long term, but their performance tends to be cyclical, varying with macroeconomic conditions. This has driven demand for multi-factor indices, which combine factors such as quality, value and momentum to leverage their low correlations. By diversifying across multiple factors, these indices seek to enhance long-term risk-adjusted performance and…
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Tracking Next Gen Factors across Economic Regimes
Why does index methodology matter when evaluating the next generation of factor solutions? S&P DJI’s Elizabeth Bebb and Xtrackers’ Sturmius Schneider explore the metrics powering the next generation of S&P 500 factor indices and how these new tools are helping inform market participants applying factors strategically and tactically.
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Big Tech, Breadth and Balance
U.S. equity markets have been whipsawed in the past few days, with initial optimism surrounding Big Tech earnings powering the S&P 500® to an intraday high, and subsequent disappointing reactions to earnings coupled with the Fed’s decision to hold rates steady leading to a sharp retreat for The 500®. The pullback in Tech and the…
Factors for All Markets
Recently, much of the financial media has been occupied with discussing the potential of a bubble in markets. Some have compared the current sentiment to the “animal spirits” of the late 1990s.1 Proponents of this view cite stretched valuations, retail-driven speculation and the circularity of transactions as evidence to support their claims. Whether or not…
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Multi-Factor Indices in the GCC Market
The Middle East is a rapidly evolving region and one of its key growth areas has been factor indexing. The increasing adoption of these strategies has been driven by a desire for risk reduction, enhanced returns and cost efficiencies. This trend is evident not only in the adoption of single-factor styles but also in multi-factor…
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We Never Go out of Style
Style indices have behaved differently internationally and in the U.S. This year, U.S. growth stocks, represented by the S&P United States BMI Growth (up 14.8% as of the end of September 2025), outperformed the broader U.S. market (up 14.4%). Outside the U.S., the S&P Global Ex-U.S. BMI Value (up 30.7%) has performed better (see Exhibit…
Introducing the S&P 500 GARP 100 Index
The S&P 500® GARP 100 Index, launched on Nov. 24, 2024, sits at the intersection of value and growth strategies. Its objective is to identify 100 constituents from the S&P 500 that exhibit strong growth while maintaining reasonable valuations and high quality attributes. Methodology The index employs a two-step selection process. First, it identifies the…
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2024 S&P U.S. Style Indices Rebalancing: Key Sector Shifts and Impacts
The S&P U.S. Style Indices underwent their annual rebalancing in December 2024, leading to significant changes in sector exposures. Particularly, the S&P 500 style reclassification led to above-average turnover, as shown in Exhibit 1. While the S&P 500 Growth’s turnover was not unusual, the S&P 500 Value’s turnover was relatively high compared to the historical…