At a glance
- The proposal also adds price-to-sales to the value index's screening inputs, which could alter which large-cap stocks qualify as value under the final rules.
- Funds tracking Russell 1000 growth or value style indices would have to rebalance to any new growth/value boundary.
- A 74% growth and roughly a quarter value split means both growth and value funds would realign to the same large-cap universe.
FTSE Russell is proposing a growth/value reset that would put 74% of Russell 1000 market cap in the growth index and leave value with roughly a quarter of the large-cap gauge. Responses are due Dec. 11.
The proposal also adds price-to-sales to the value index's screening inputs, which could alter which large-cap stocks qualify as value under the final rules.
Funds tracking Russell 1000 growth or value style indices would have to rebalance to any new growth/value boundary. A 74% growth and roughly a quarter value split means both growth and value funds would realign to the same large-cap universe.
Reported by The Tape desk from FTSE Russell proposal. Published . Corrections