MSCI U.S. Prime Value Index

Definition

The term MSCI U.S. Prime Value Index refers to a composite that includes large and mid-cap companies located in the United States which exhibit value characteristics.  The MSCI U.S. Prime Value 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 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 Value Index contains a subset of the securities included in the Prime Market 750.  Companies appearing in the value index are those deemed to have relatively low valuations, yet are of high quality.  The three variables used when determining if a company exhibits this value style include: book value to price ratio, 12-month forward earnings to price ratio, and dividend to price ratio (dividend yield).

At the time of writing, there were 160 constituents in the MSCI U.S. Prime Value 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 the ticker symbol MSCIPV and Bloomberg's real time ticker symbol MZUSPV.

Related Terms

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