S&P 500 Growth Index
Direct answer: The S&P 500 Growth Index measures the growth-style portion of the S&P 500 using sales growth, the ratio of earnings change to price, and momentum. In the standard series, partial overlap with Value is allowed: a security can be partially allocated to both styles simultaneously.
How the Growth Index is constructed
The methodology uses three factors for each security in the S&P 500 parent: (1) sales growth over the most recent 12 months, (2) the ratio of earnings change to price over the prior 12 months, and (3) momentum measured by the 12-month price return. S&P Dow Jones Indices computes a Growth Score and a Value Score for each security, then assigns each security an allocation factor from 0 to 100 percent to Growth and the complementary 0 to 100 percent to Value. The scores and weights are recalculated annually with a quarterly review.
Partial overlap with the Value Index
Unlike a pure-growth/pure-value split, the standard S&P 500 style series allows a security to sit partly in both indices at the same time. A company with intermediate-spectrum characteristics may contribute some float-adjusted market cap to the Growth Index and some to the Value Index concurrently. Membership is therefore a dated allocation, not a permanent label.
What the Growth label means and does not mean
A Growth allocation means the security ranked high on the three style factors at the most recent annual reconstitution. It is not a forward-looking promise of revenue or earnings growth, and it does not replace company-level analysis of revenue drivers, unit economics, margins, returns on capital, balance-sheet quality, cyclicality, competition, or capital allocation.
Relationship to the S&P 500 family
The S&P 500 Growth Index derives its universe entirely from the S&P 500. Changes to the parent index (additions, removals, or reclassifications) flow through to the Growth Index at the next applicable reconstitution. For the complete Growth and Value comparison, see the S&P 500 Growth and Value Index Family hub.
Frequently Asked Questions
What is the S&P 500 Growth Index?
A rules-based sub-index of the S&P 500 that captures securities scoring high on three growth-style factors: sales growth, earnings-change-to-price ratio, and price momentum. Companies can be partially allocated to both Growth and Value simultaneously.
How often is the S&P 500 Growth Index rebalanced?
S&P DJI reconstitutes the style indices annually, typically in late December, with a quarterly review to handle additions and removals from the parent S&P 500.
Can a company be in both the Growth Index and the Value Index?
Yes. The standard style series is not mutually exclusive. Securities with intermediate Growth and Value scores receive a fractional allocation to each index. Only securities with extreme scores are allocated 100% to one style.