Neutral impactResults
Growth, value stocks set for reshuffle as S&P adopts new rules
Economic Times 1 hr ago·24 Oct 2026, 4:21 am
S&P Dow Jones Indices is overhauling its methodology for classifying growth and value stocks. The changes will introduce new criteria, including intangible assets and forward earnings, to better reflect the current market landscape.
This shift is significant because it will alter how billions of dollars in passive funds are allocated. As a result, the composition of these funds will change, potentially moving money away from high-momentum stocks toward companies with stronger fundamentals and cash generation.
Investors should monitor how these index changes impact fund flows and stock prices. The reallocation of assets could lead to a reshuffle in the market, favoring companies that meet the updated definitions of growth and value.
Excerpt from Economic Times
S&P Dow Jones Indices will soon change its rules for classifying growth and value shares. The new criteria will incorporate intangible assets, forward earnings, and free cash flow instead of relying on 12-month price momentum. These changes are expected to affect approximately $375 billion of passive funds linked to…Read the original at Economic Times
Key takeaways
- Category: Results.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
