S&P 1500 Composite Value

Definition

The term S&P 1500 Composite Value refers to an index that includes a subset of the securities found in the S&P 400, S&P 500, and S&P 600 Indices.  The S&P 1500 Value is published and maintained by S&P Dow Jones Indices.

Explanation

The S&P 1500 is a composite index that includes securities which account for 90% of the total market capitalization of the United States' stocks.  The index includes small, mid, and large cap stocks.  The S&P 1500 Value is a subset of the securities appearing in the S&P 1500, which includes the S&P 500, S&P 400, and S&P 600 indices.

The components of this index were selected based on their value potential with respect to sales, earnings relative to price, and momentum.  These three criteria determine the security's value score, which is used when selecting securities for inclusion in the Value Index.  First launched on December 19, 2005, the index is made up of approximately 1,100 securities.  The composite is designed to provide investors with a measure of the performance of U.S. value equities.   The performance of the index can be tracked using the stock ticker SPUSCV.

Pure Value versus Value

S&P Dow Jones first determines whether a stock appearing in the S&P 1500 has value potential based on sales, earnings and momentum.  These 1,100 securities are then placed in the Value index.  Those securities with the highest value scores (approximately 360 securities) are placed in the Pure Value index.  In other words, the Pure Value index is a subset of the Value index, and includes those securities with the highest value potential.

Related Terms

S&P 1500 Composite Growth, S&P 1500 Composite Pure Growth, S&P 1500, S&P 600