MSCI U.S. Prime Growth Index

Definition

The term MSCI U.S. Prime Growth Index refers to a composite that includes large and mid-cap companies located in the United States which exhibit growth characteristics.  The MSCI U.S. Prime Growth Index is published and maintained by Morgan Stanley Capital International (MSCI).

Explanation

The MSCI U.S. Prime Market 750 is designed to measure the performance of the mid-sized and large capitalization companies in the United States equities market.  The index represents roughly 85% of the free float adjusted market capitalization of the U.S. equities market and includes the MSCI U.S. Large Cap 300 and the MSCI U.S. Mid Cap 450 composites.  Each of these indices is designed to provide investors with a measure of the U.S. equities market.  Companies are selected based on their float-adjusted market capitalization.

First launched on April 2, 2005, the MSCI U.S. Prime Growth Index contains a subset of the securities included in the Prime Market 750.  Companies appearing in the growth index are those deemed to have relatively high growth potential.  The five variables used when determining if a company exhibits this growth style include: long-term and short-term forward EPS growth rate, current internal growth rate, long-term historical EPS growth, and long-term historical sales per share growth.

At the time of writing, there were 370 constituents in the MSCI U.S. Prime Growth Index.  All MSCI market capitalization indexes are fully reviewed at the end of May and November.  Partial reviews take place in February and August.  The performance of this index can be monitored via Bloomberg's real time ticker symbol MZUSPG.

Related Terms

MSCI U.S. Small Cap 1750 Index, MSCI U.S. Prime Value Index, MSCI U.S. Prime Market Index, MSCI U.S. Mid Cap Value Index