S&P Indices to Revise Style Methodology This December
The index provider is updating its growth and value scoring frameworks for major U.S. indexes before the market opens on December 21.
Updated on Oct. 24, 2026 in Investing
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S&P Dow Jones Indices will implement significant changes to its growth and value scoring methodologies across several major U.S. stock index families. These revisions are scheduled to take effect before the market opens on December 21, 2026.
Why it matters
Updating these classification criteria shifts how assets are categorized within widely followed market benchmarks. Investors relying on these indices for portfolio tracking or strategy may see changes in how growth and value stocks are identified.
The updated framework removes 12-month share-price momentum for growth stocks while adding free cash flow-to-price and earnings-to-price ratios for value stocks. It retains the three-year sales per share growth rate as a growth factor.
The players
S&P Dow Jones Indices
This organization is a major provider of financial market indices and is responsible for managing the methodologies of the S&P 500 and other related index families.
The details
The new value scoring replaces book value-to-price with an intangibles-adjusted measure and introduces free cash flow-to-price, though the latter is excluded for specific financial and real estate sectors. Pro-forma files reflecting these reclassifications will be available to clients starting December 4, 2026.
Timeline
December 4, 2026: Pro-forma files with revised classifications released.
December 21, 2026: Methodology changes take effect before market open.
Market Dynamics
This modification follows a standard pattern of index refinement designed to maintain relevance as accounting standards and market valuation methods evolve. It adjusts the core mechanics of the S&P 500 index methodology to better capture modern drivers of corporate value.
Retail investors holding funds that track S&P style indices may observe shifts in their holdings as components are reclassified under the new criteria. These updates could necessitate a review of personal portfolio allocations to ensure they still align with intended investment goals.
The takeaway
Investors should review the upcoming pro-forma data to determine if these methodology changes will impact the composition of their existing index-linked investments. Understanding these classification shifts is essential for maintaining accurate alignment with specific growth or value strategies.
What happens next
Clients of S&P Dow Jones Indices will receive pro-forma data on December 4, 2026, ahead of the official implementation on December 21, 2026.
Further reading
For more information on market benchmarks and strategy, visit the Investing section.
Source note: This article includes information reported by TokenPost.
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