Tag Archives: revenue-weighted indices
A Fundamental Approach to Weighting Stocks: The S&P 500 Revenue-Weighted Index
The S&P 500® Revenue-Weighted Index assigns company weights based on revenue rather than market capitalization. By anchoring weights to revenue, the index may help reduce concentration risk, limit weights in higher-valued stocks and increase representation of companies that generate more sales. In this blog, we review the index’s performance characteristics, valuation metrics and diversification profile….
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Fundamental Weighting for Long-Term Outperformance and Enhanced Diversification: The S&P 500 Revenue-Weighted Index
By weighting the constituents of the S&P 500® based on top-line revenue, the S&P 500 Revenue-Weighted Index offers an alternative to traditional benchmarks that are weighted by float market cap (FMC). This approach aims to better reflect the fundamental strength of each company, while offering better valuations and enhanced diversification. In this blog, we will…
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Revenue-Weighted Indices: An Alternative to Core Equities
As persistently high inflation, high interest rates and geopolitical risks continue to dominate the macro environment, the S&P 500® Revenue-Weighted Index, S&P MidCap 400® Revenue-Weighted Index and S&P SmallCap® 600 Revenue-Weighted Index have outperformed their corresponding float-adjusted market-capitalization (FMC) weighted indices by more than 5% during the past one-year period (see Exhibit 1). In this…
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