S&P 900 Composite Growth

Definition

The term S&P 900 Composite Growth refers to an index that includes a subset of the securities found in the S&P 400 and S&P 500 Indices.  The S&P 900 Growth is published and maintained by S&P Dow Jones Indices.

Explanation

The S&P 900 is a composite index that includes mid to large-cap stocks in the United States' market.  The S&P 900 Growth is a subset of the securities appearing in the S&P 900, which includes the S&P 400 and S&P 500 indices.

The components of this index were selected based on their growth potential with respect to sales, earnings relative to price, and momentum.  These three criteria determine the security's growth score, which is used when selecting securities for inclusion in the Growth Index.  First launched on December 16, 2005, the index is made up of approximately 550 securities.  The composite is designed to provide investors with a measure of the performance of mid to large-sized U.S. value equities.  The performance of the index can be tracked using the stock ticker SPUSNG.

Pure Growth versus Growth

S&P Dow Jones first determines whether a stock appearing in the S&P 900 has growth potential based on sales, earnings and momentum.  These 550 securities are then placed in the Growth index.  Those securities with the highest growth scores (approximately 210 securities) are placed in the Pure Growth index.  In other words, the Pure Growth index is a subset of the Growth index with the highest growth potential.

Related Terms

S&P 900 Composite Value, S&P 900 Pure Growth, S&P 1000 Pure Growth, S&P 900