# S&P Dow Jones Indices Adds Intangibles and Cash Flow to Growth and Value Rules

> S&P Dow Jones Indices adopted new growth and value classification rules affecting at least $375 billion in passive funds.

- Published: 2026-10-24T02:46:10+00:00
- Section: Regulation & Approvals
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-24/sp-dow-jones-indices-growth-value-rules
- Source: [Business News Today](https://www.moneycontrol.com/news/business/markets/growth-value-stocks-set-for-reshuffle-as-s-p-adopts-new-rules-14058927.html)

## 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.

[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.

## What S&P Dow Jones Indices Changed

The 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.

The 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.

S&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.

## S&P Dow Jones Indices' Recent Index Moves

S&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.

## Earlier S&P Dow Jones Indices Actions

S&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.

## FTSE Russell Consultation Deadline

FTSE 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.

## Companies in this story

- [S&P Dow Jones Indices company profile](https://akta.pro/company-profiles/0004ijh/s-p-dow-jones-indices) · website: https://www.spglobal.com/spdji

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