What Is the S&P 500 Herbal Value Index?
The time frame S&P 500 Herbal Value Index refers to a score-weighted index advanced thru Usual and Poor’s (S&P). The index uses what it calls a “style-attractiveness-weighting scheme” and most efficient consists of stocks all the way through the S&P 500 Index that show off powerful value characteristics. The index used to be as soon as offered in 2005 and consists of 120 constituents, the majority of which may well be financial services and products corporations.
The index used to be as soon as previously referred to as the S&P 500/Citigroup Herbal Value Index because of the relationship between Usual and Poor’s, and Citigroup.
Key Takeaways
- The S&P 500 Herbal Value Index is an index produced from essentially the most tough value stocks on the S&P 500.
- The Herbal Value Index used to be as soon as offered in December 2005.
- The index is score-weighted as opposed to market-cap-weighted.
- The index is rebalanced once a year and is calculated in U.S. greenbacks and the South Korean won.
- It is associated with the Invesco S&P 500 Herbal Value ETF.
Understanding the S&P 500 Herbal Value Index
The S&P 500, is an unlimited stock market index. Based totally available on the market capitalizations of 500 massive corporations having common stock listed on the New York Stock Change (NYSE) or the Nasdaq, the S&P 500 is without doubt one of the most time and again followed equity indices and is normally considered probably the most easiest representations of the U.S. financial device and the stock market.
The company offered the S&P 500 Herbal Value Index on Dec. 16, 2005, as a style-concentrated index. It is meant to track the potency of stocks that show off essentially the most tough value characteristics thru the usage of a style-attractiveness-weighting scheme. The index is narrow in focus, as it most efficient incorporates those S&P 500 corporations with value stock characteristics as made up our minds on thru S&P.
As of July 2022, the index used to be as soon as produced from 120 different corporations. The perfect 5 sectors thru weight are financials (30.3%), neatly being care (12.3%), shopper staples (10.5%), energy (9.5%) and materials (7.3%). The median market cap for the ones corporations used to be as soon as $47.03 billion. The perfect 5 corporations listed on the index as of this date had been as follows:
- Cigna Corporate (healthcare)
- Berkshire Hathaway B (financials)
- Valero Energy Corp (energy)
- Marathon Petroleum Corp. (energy)
- Allstate Corp (financials)
The index is rebalanced on an annual basis. The index’s calculation is finished in real-time in every the U.S. dollar (USD) and the South Korean won (KRW).
The S&P 500 Herbal Value Index returned 25.92% on a year-to-date (YTD) basis as of April 30, 2021. Its one-year return used to be as soon as 72.32% while the 10-year return totaled 11.65%. It has normally outpaced its benchmark, the S&P 500 Value, which offered in total returns of 14.9%, 40.9%, and 11.27% on a YTD, one-year, and 10-year basis.
SPXPV
The ticker symbol for the S&P 500 Herbal Value Index.
Specific Issues
The S&P 500 Herbal Value Index, which used to be as soon as previously known as the S&P 500/Citigroup Herbal Value Index, is among the company’s staff of favor indices. They are derived from what is known as a headline or father or mother index, which moreover incorporates the identical constituents.
This index is expounded to a corresponding exchange-traded fund (ETF) referred to as the Invesco S&P 500 Herbal Value ETF. The fund used to be as soon as offered on March 1, 2006, and trades on the NYSE Arca beneath the ticker symbol RPV. Internet assets totaled $2.3 billion as of Would perhaps 5, 2021.
At least 90% of the fund’s capital is invested throughout the index’s constituents. The fund’s regulate worth is 0.35% and its distribution price used to be as soon as 2.05%. The fund’s returns consistent with its web asset value (NAV) mirrored those of the index, coming at 25.73%, 71.67%, and 11.27% on a YTD, one-year, and 10-year basis.
