Standard & Poor’s will make its semi-annual changes to the S&P 500/Barra Growth, S&P 500/Barra Value, S&P MidCap 400/Barra Growth, S&P MidCap 400/Barra Value, S&P SmallCap 600/Barra Growth and S&P SmallCap 600/Barra Value indices after the close of trading on Friday, June 17, 2005. On September 16, 2005, the S&P/Barra Growth and Value indices and their S&P parent indices will transition in their entirety to a full float market capitalization-weighted structure. The S&P/Barra Growth and Value index series will continue to be calculated on a real-time basis through December 16, 2005. The series will be calculated on an end-of-day basis from December 19 through June 16, 2006, at which point it is scheduled to be discontinued.
A stock’s categorization as either “growth” or “value” is determined by its book-to-price ratio. Using this measure, each U.S. index is split into two mutually exclusive sets, each of which comprises roughly half of the index’s total market capitalization. Each S&P/Barra Value Index contains stocks with higher book-to-price ratios, whereas each S&P/Barra Growth Index includes stocks whose book-to-price ratios are lower. Like the parent indices from which they are derived, the growth and value indices are market capitalization-weighted.
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