S&P 900 Composite Value

Definition

The term S&P 900 Composite Value 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 Value 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 Value 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 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 16, 2005, the index is made up of approximately 670 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 SPUSNV.

Pure Value versus Value

S&P Dow Jones first determines whether a stock appearing in the S&P 900 has value potential based on sales, earnings and momentum.  These 670 securities are then placed in the Value index.  Those securities with the highest value scores (approximately 200 securities) are placed in the Pure Value index.  In other words, the Pure Value index is a subset of the Value index with the highest value potential.

Related Terms

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