S&P Dow Jones Indices adopts new rules for growth, value stocks

S&P Dow Jones Indices: S&P Dow Jones Indices is a major global provider of index-based concepts, data, and research, serving as the home to key benchmarks including the S&P 500 and Dow Jones Industrial Average. The organization recently conducted a consultation and updated the descriptor framework for its S&P U.S. Style Indices to better reflect changes in market structure and company fundamentals. This directly led to the adoption of new rules for classifying equities as growth or value stocks, with implementation tied to the December 2026 reconstitution. Methodology Update: S&P Dow Jones Indices has updated the growth and value factors in its U.S. Style Indices methodology to incorporate intangibles-adjusted book value, forward earnings ratios, and other adjustments while removing 12-month price momentum from growth assessments. Implementation Timing: The revised classification rules will take effect prior to the market open on December 21, 2026, impacting associated sub-indices and derived benchmarks.