Direct Answer

The Russell 1000 Value Index is a rule-based measure of the value-oriented segment of large-cap U.S. equities. Maintained by FTSE Russell, a subsidiary of LSEG, it takes the companies in the Russell 1000 and classifies each one using a composite value score built from book-to-price ratio, I/B/E/S forecast long-term growth mean, and sales per share historical growth. Companies with the highest composite value scores receive full weight in the Value index. Like every index, it owns nothing. It is a calculated number that tracks a defined group of securities according to a published weighting formula.

What the Russell 1000 Value Index Measures

The Russell 1000 Value Index measures the performance of the value-style portion of large-cap U.S. equity. It does not represent the entire U.S. stock market or even the entire large-cap segment. Instead, it isolates the companies within the Russell 1000 that the FTSE Russell methodology classifies as value stocks based on quantitative scoring across three factors.

The index is used as a reference point for understanding how large-cap value stocks behave as a group over time. Investors, portfolio managers, and asset allocators compare their own exposures and returns against this benchmark to measure how closely they are aligned with a value-tilted approach to large-cap U.S. equities.

Because the index is built from a parent universe of large-cap stocks, it will always represent companies with substantial market capitalizations. Value characteristics within this index appear alongside the scale and business diversification that tend to accompany large-cap status. This combination distinguishes the Russell 1000 Value from value indexes built on smaller companies, such as the Russell 2000 Value.

Provider and Governance

FTSE Russell, a subsidiary of LSEG (London Stock Exchange Group), maintains the Russell 1000 Value Index. FTSE Russell publishes the methodology document that defines every rule governing this index: which securities are eligible, how the composite value score is calculated, how partial weights are assigned to companies in the middle of the style distribution, how each constituent is weighted, and when membership is revised.

The methodology is available on the FTSE Russell website and is the authoritative source for all construction rules described on this page. When methodology rules change, FTSE Russell announces those changes in advance of implementation. Users of the index for benchmarking or product construction purposes rely on the published methodology to understand what the index is designed to measure.

Swoopr does not publish or republish constituent lists or current index weights for the Russell 1000 Value Index. FTSE Russell licenses constituent data, and the provider's own resources are the correct place to access current membership and composition information.

The Eligible Universe: Starting with the Russell 1000

The Russell 1000 Value Index does not independently select stocks from the full U.S. equity market. It begins with the companies already in the Russell 1000, the parent index, and applies value style scoring to that set.

The Russell 1000 itself consists of the largest U.S. companies by float-adjusted market capitalization within the Russell 3000 universe. The Russell 3000 is designed to cover approximately 98% of the investable U.S. equity market by market capitalization. The largest companies within that group form the Russell 1000, which is the large-cap segment of the Russell family.

Because every Russell 1000 Value constituent was first a Russell 1000 member, the value index inherits the eligibility rules of the parent. Companies must meet float, price, and liquidity requirements to be in the Russell 3000, and those requirements flow through to the Russell 1000 and then to the style sub-indexes. Changes to the Russell 1000 universe at annual reconstitution also change the eligible pool for the Value index.

Value Style Scoring Methodology

The value classification process is the defining feature of this index. FTSE Russell scores each company in the Russell 1000 on three quantitative factors and combines them into a composite value score. The higher the composite value score, the more a company is classified as value rather than growth.

Factor 1: Book-to-Price Ratio

Book-to-price is the inverse of the more commonly cited price-to-book ratio. A high book-to-price ratio means the stock trades at a low price relative to the accounting book value of the company. Companies trading near or below book value score well on this factor. This factor captures the classic value investing intuition that cheap relative to assets is a value signal.

Factor 2: I/B/E/S Forecast Long-Term Growth Mean

I/B/E/S is a database of analyst earnings forecasts. The long-term growth mean represents the consensus estimate among analysts for how fast a company's earnings will grow over a longer forward horizon, typically five years. Companies with lower expected long-term earnings growth score better on this factor for value classification purposes. High expected earnings growth is a hallmark of growth-style companies, so lower expected growth tilts a company toward the value end of the spectrum.

Factor 3: Sales Per Share Historical Growth

This factor measures how rapidly a company has grown its revenue per share in recent history. Companies with lower historical sales growth per share score better on this factor for value classification. Rapidly growing revenues are associated with growth-style companies, and slower historical revenue growth is a value signal under this methodology.

How Scores Combine and Translate into Index Membership

FTSE Russell combines scores on these three factors into a single composite value score for each company. The distribution of composite scores across the Russell 1000 determines who belongs in the Value index and with what weight.

Companies with the highest composite value scores are fully classified as value and receive their full float-adjusted market cap weight in the Value index. Companies in the middle of the score distribution receive a partial weight in both the Value index and the Growth index simultaneously. The size of each partial weight depends on where in the middle band the company falls. Companies with the lowest composite value scores are fully classified as growth and appear only in the Russell 1000 Growth index.

This partial-weight design is an important feature. It means the Value and Growth indexes together can add up to more than the parent Russell 1000 because some companies have a fraction of their weight in both sub-indexes at the same time. This approach avoids a sharp boundary where a small change in a company's score causes a large reallocation of its weight from one index to the other.

Weighting Method

The Russell 1000 Value Index is weighted by float-adjusted market capitalization. Each constituent's weight within the index equals its float-adjusted market capitalization divided by the total float-adjusted market capitalization of all constituents in the index.

Float-adjusted market cap uses only the shares that are available for public trading. It excludes shares held by insiders, governments, or other entities that are not freely traded. Using float-adjusted rather than total market cap means the index reflects the shares that investors can actually buy and sell rather than the full theoretical size of each company.

Under this weighting approach, the largest companies by float-adjusted market cap naturally receive the greatest weights. A company that is twice the float-adjusted size of another will carry roughly twice the weight, assuming both fall in the same value score bucket. This is a common weighting method for major equity indexes and means the index is influenced more by large-company price movements than by small-company movements.

Reconstitution Schedule

FTSE Russell reconstitutes the Russell 1000 Value Index as part of the broader annual reconstitution of the Russell US index family, which occurs each June. This is the most significant structural event for the index each year.

The process begins in May. FTSE Russell ranks all eligible U.S. companies by float-adjusted market capitalization and recalculates composite value scores for each. Preliminary membership lists are announced in late May or early June. This advance announcement allows market participants to understand what changes are coming before they take effect. Final membership changes go into force at the end of June, typically at the close on the last Friday of the month, using that day's closing prices.

Because reconstitution changes which companies belong in the index and at what style weights, exchange-traded funds and mutual funds that track the Russell 1000 Value Index must trade to align with the new membership. This trading activity can be concentrated around reconstitution dates, which is why the schedule matters to anyone who holds a fund tracking this index rather than only to the index provider.

Outside the annual reconstitution, FTSE Russell adds newly listed companies at quarterly reviews. Initial public offerings and corporate spinoffs that meet the eligibility criteria can be included in March, June, September, and December reviews rather than waiting for the next annual cycle. This allows significant new companies to enter the index relatively soon after listing rather than remaining outside for up to a full year.

How Investors Use the Russell 1000 Value Index

The Russell 1000 Value Index is one of the most widely used benchmarks in U.S. equity markets for the large-cap value category. Its uses fall into a few main areas.

Benchmarking Investment Products

Many large-cap value ETFs and mutual funds use the Russell 1000 Value Index as their benchmark or directly track it. A fund that tracks the index holds the same companies in the same approximate weights and attempts to match the index's performance. Funds that use it as a benchmark may hold different securities but compare their returns against this index to show how their approach to large-cap value investing compares against a passive representation of the category.

Measuring Style Exposure

Asset allocators and portfolio analysts use the Russell 1000 Value alongside the Russell 1000 Growth to understand style tilts in a broader portfolio. If a portfolio holds a higher fraction of its large-cap equity in stocks with high book-to-price ratios and lower growth expectations, its value orientation can be measured against this index. The growth-value split is one of the primary dimensions along which equity portfolios are characterized in institutional portfolio management.

Sector Representation

Value-oriented sectors tend to receive significant weight in this index because the scoring methodology rewards low growth expectations and high book-to-price ratios. Financial companies, energy producers, industrial manufacturers, utilities, and certain healthcare subsectors often appear prominently because these industries frequently trade at lower multiples relative to book value and carry more modest analyst growth forecasts compared to technology and consumer discretionary companies. The exact sector composition changes with each reconstitution as company scores and market capitalizations shift.

Comparisons with Related Indexes

Russell 1000 Value vs. Russell 1000 Growth

The Russell 1000 Growth index covers the growth-oriented portion of the same Russell 1000 parent universe. Growth classification rewards companies with high I/B/E/S long-term earnings growth forecasts and higher price-to-book ratios. Value classification rewards the opposite set of characteristics. The two indexes are complementary: together they cover the full Russell 1000, with a partial-weight overlap zone in the middle where some companies have fractional weight in both at the same time.

Because they use different factor signals, the two indexes tend to favor different sectors. The Growth index tends to carry more weight in technology, communications services, and consumer discretionary companies. The Value index tends to carry more weight in financials, energy, industrials, and utilities. Over long periods, the performance difference between the two has varied considerably with market conditions, making the growth-value distinction one of the more actively watched style tilts in U.S. equity markets.

Russell 1000 Value vs. the Russell 1000 Parent

The Russell 1000 parent index includes all large-cap U.S. stocks regardless of style score. It is style-neutral by construction, giving equal consideration to growth and value characteristics. The Russell 1000 Value isolates the subset that scores toward the value end of the distribution, so it will always trade at lower average multiples and carry lower average growth expectations than the parent. An investor holding the parent exposure already has some value characteristics, but the Value sub-index concentrates that tilt.

Russell 1000 Value vs. S&P 500 Value

Both indexes measure large-cap U.S. value stocks, but they differ in their parent universes and their factor methodologies. The S&P 500 Value index draws from the S&P 500 universe of 500 companies, while the Russell 1000 draws from a broader large-cap universe of approximately 1,000 companies. The eligibility rules for both parent indexes also differ.

The value scoring methodologies use different factors. S&P Dow Jones Indices scores its companies on book value to price ratio, earnings per share change to price, and sales per share twelve-month change to price, with momentum ratio also factored in. FTSE Russell uses book-to-price, I/B/E/S forecast long-term growth mean, and historical sales per share growth. Different factor choices lead to different constituent weights and sector exposures even when both indexes are described as measuring large-cap U.S. value stocks. Comparing the two is a useful exercise for any investor trying to understand the specific value signal they want to benchmark against.

Frequently Asked Questions

Who maintains the Russell 1000 Value Index?

FTSE Russell, a subsidiary of LSEG (London Stock Exchange Group), maintains the Russell 1000 Value Index and publishes the methodology that governs its eligibility, scoring, and weighting rules.

How does FTSE Russell decide which stocks belong in the Value index?

FTSE Russell assigns each company in the Russell 1000 a composite value score using three factors: book-to-price ratio, I/B/E/S forecast long-term growth mean, and sales per share historical growth. Companies with the highest composite value scores receive full weight in the Value index. Companies near the middle of the distribution receive partial weights in both the Value and Growth indexes at the same time.

What is the difference between the Russell 1000 Value and Russell 1000 Growth indexes?

The two indexes split the Russell 1000 by investment style. Value includes companies with high book-to-price ratios and lower growth expectations. Growth includes companies with high earnings growth forecasts and strong price momentum. A band of companies in the middle receives partial weights in both indexes simultaneously, so the two indexes overlap slightly rather than being fully separate.

How often is the Russell 1000 Value Index reconstituted?

FTSE Russell reconstitutes the Russell US indexes annually each June. Ranking takes place in May, results are announced in late May or early June, and the membership change takes effect at the end of June. IPOs and spinoffs can be added at quarterly reviews outside the main annual reconstitution.

What sectors tend to be prominent in the Russell 1000 Value Index?

Because the value scoring rewards high book-to-price ratios and lower growth expectations, sectors such as financials, energy, industrials, utilities, and healthcare often carry significant weights in the Russell 1000 Value Index. The exact sector composition changes as company scores and market capitalizations shift over time.

Can a company appear in both the Russell 1000 Value and Russell 1000 Growth indexes?

Yes. FTSE Russell uses a partial weight system for companies near the style boundary. These companies receive a portion of their float-adjusted market cap weight in the Value index and the remainder in the Growth index. This avoids cliff-edge effects where a minor score change would move a large company entirely from one index to the other.

References

  • FTSE Russell: Russell US Indexes. Methodology and index documentation for the Russell US family, including the Russell 1000 Value Index. All construction rules described on this page are derived from this source.

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