Growth, value stocks set for reshuffle as S&P adopts new rules
FROM THE WIRE · ECONOMICTIMES.INDIATIMES.COM
S&P Dow Jones Indices will soon change its rules for classifying growth and value shares. The new criteria will incorporate intangible assets, forward earnings, and free cash flow instead of relying on 12-month price momentum. These changes are expected to affect approximately…
Read at the source ↗MARKET IMPACTNEUTRAL✦ News Impact agent estimateTone: neutralThe rule change could reshuffle around $375 billion of passive funds linked to the index.AI-generated summary
✦ IN BRIEF · AIAI-generated summary
- 01S&P Dow Jones Indices will change its rules for classifying growth and value shares.
- 02The new criteria incorporate intangible assets, forward earnings and free cash flow.
- 03FTSE Russell is also considering adjustments due to the dominance of technology companies.