{"url":"https://newsforagent.com/news/2026-10-24/sp-dow-jones-indices-growth-value-rules","markdown_url":"https://newsforagent.com/news/2026-10-24/sp-dow-jones-indices-growth-value-rules.md","title":"S&P Dow Jones Indices Rewrites Growth and Value Rules","headline":"S&P Dow Jones Indices Adds Intangibles and Cash Flow to Growth and Value Rules","description":"S&P Dow Jones Indices adopted new growth and value classification rules affecting at least $375 billion in passive funds.","section":"Regulation & Approvals","published_at":"2026-10-24T02:46:10+00:00","modified_at":"2026-10-24T02:46:10+00:00","author":"News Desk","key_takeaways":["S&P Dow Jones Indices will add intangible assets, forward earnings and free cash flow to its growth and value classification factors and drop 12-month price momentum.","The new rules take effect at the annual reconstitution before the market open on December 21.","Bloomberg Intelligence analyst James Seyffart estimated at least $375 billion of passive funds are tied to the affected gauges.","FTSE Russell is reconsidering the 50/50 split between growth and value stocks in its benchmarks, with that consultation ending December 11."],"companies":[{"name":"S&P Dow Jones Indices","is_primary":true,"profile_url":"https://akta.pro/company-profiles/0004ijh/s-p-dow-jones-indices","website":"https://www.spglobal.com/spdji"}],"source":{"publisher":"Business News Today","title":"Growth, value stocks set for reshuffle as S&P adopts new rules- Moneycontrol.com","url":"https://www.moneycontrol.com/news/business/markets/growth-value-stocks-set-for-reshuffle-as-s-p-adopts-new-rules-14058927.html"},"other_sources":[],"tags":["Regulation & Approvals","S&P Dow Jones Indices"],"body_markdown":"[S&P Dow Jones Indices](https://akta.pro/company-profiles/0004ijh/s-p-dow-jones-indices) adopted new rules for sorting equities into growth and value styles, adding intangible assets, forward earnings and free cash flow while dropping 12-month price momentum, changes that take effect before the market open on December 21. [Business News Today](https://www.moneycontrol.com/news/business/markets/growth-value-stocks-set-for-reshuffle-as-s-p-adopts-new-rules-14058927.html) reported the decision followed a recent consultation.\n\n## What S&P Dow Jones Indices Changed\n\nThe index provider will add intangible assets, forward earnings and free cash flow to the factors that define whether a company is cheap relative to its share price, according to a statement issued Friday. At the same time, 12-month price momentum will be dropped as a criterion for ranking a company's growth potential. The new rules take effect at the annual reconstitution before the market open on December 21.\n\nThe changes are poised to force index-tracking funds to adjust holdings to match the new constituents. Bloomberg Intelligence analyst James Seyffart estimated at least $375 billion of passive funds are tied to the affected gauges.\n\nS&P's decision follows a long debate over whether conventional value measures still work. Researchers and money managers have argued that part of value's long slump reflected flaws in the metrics, especially price-to-book. The adjustment is meant to account for spending on research and other internally developed assets that accounting rules usually treat as expenses rather than balance-sheet assets. Critics say this makes intellectual-property-heavy companies look expensive and can keep them out of value indexes.\n\n## S&P Dow Jones Indices' Recent Index Moves\n\nS&P Dow Jones Indices is a global index provider and division of S&P Global that licenses benchmark indices including the S&P 500 and Dow Jones Industrial Average to asset managers, ETF issuers, derivatives exchanges and wealth platforms, according to akta.pro [company records](https://akta.pro/company-data). The same records show a February 2026 product launch with Lincoln International, the S&P Lincoln Senior Debt Index Series, comprising U.S. and European indices tracking fair value of direct lending investments across fund clients.\n\n## Earlier S&P Dow Jones Indices Actions\n\nS&P Dow Jones Indices launched the S&P SmallCap 600 Dividend Aristocrats index in April 2026, completing the U.S. core series of S&P Dividend Aristocrats Indices, Seeking Alpha reported. HKEX launched the S&P 500 & HKEX Tech 100 Index on 30 September 2026, a co-branded benchmark allocating 60% to the HKEX Tech 100 and 40% to the S&P 500, rebalancing quarterly, Fxnewsgroup reported. Cboe and S&P Dow Jones Indices extended their exclusive licensing agreement for S&P 500 options through 2051, PR Newswire reported.\n\n## FTSE Russell Consultation Deadline\n\nFTSE Russell is reconsidering the 50/50 split between growth companies and value stocks in its benchmarks due to the dominance of technology giants in the market. That consultation ends December 11.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}