S&P 500 Pure Value Index

What Is the S&P 500 Pure Value Index?

The term S&P 500 Pure Value Index alludes to a score-weighted index developed by Standard and Poor's (S&P). The index utilizes what it calls a "style-engaging quality weighting scheme" and just comprises of stocks inside the S&P 500 Index that show strong value attributes. The index was sent off in 2005 and comprises of 120 constituents, the majority of which are financial services companies. The index was recently called the S&P 500/Citigroup Pure Value Index due to the relationship among Standard and Poor's, and Citigroup.

Understanding the S&P 500 Pure Value Index

The S&P 500, is a broad stock market index. In light of the market capitalizations of 500 large companies having common stock listed on the New York Stock Exchange (NYSE) or the Nasdaq, the S&P 500 is one of the most commonly followed equity indices and is generally viewed as one of the best portrayals of the U.S. economy and the stock market.

The company sent off the S&P 500 Pure Value Index on Dec. 16, 2005, as a style-concentrated index. It is intended to follow the performance of stocks that show the strongest value qualities by utilizing a style-allure weighting scheme. The index is narrow in center, as it just holds back those S&P 500 companies with value stock attributes as chosen by S&P.

As of April 30, 2021, the index was involved 120 distinct companies. The main five sectors by weight are financials (43.3%), consumer discretionary (9.3%), energy (9.1%), medical care (9.1%), and consumer staples (8.2%). The median market cap for these companies was $22.03 billion. The main five companies listed on the index as of this date were:

• Berkshire Hathaway B (financials)
• Unum Group (financials)
• Lincoln National (financials)
• HollyFrontier (energy)
• Metlife (financials)

The index is rebalanced on an annual basis. The index's calculation is done in real-time in both the [U.S. dollar](/usd-US dollar) (USD) and the South Korean won (KRW).

The S&P 500 Pure Value Index returned 25.92% on a year-to-date (YTD) basis as of April 30, 2021. Its one-year return was 72.32% while the 10-year return totaled 11.65%. It has generally outperformed its benchmark, the S&P 500 Value, which brought 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 Pure Value Index.

Special Considerations

The S&P 500 Pure Value Index, which was recently known as the S&P 500/Citigroup Pure Value Index, is among the company's group of style indices. They are derived based on what is called a headline or parent index, which likewise contains similar constituents.

This index is associated with a comparing exchange-traded fund (ETF) called the Invesco S&P 500 Pure Value ETF. The fund was sent off on March 1, 2006, and trades on the NYSE Arca under the ticker symbol RPV. Net assets totaled $2.3 billion as of May 5, 2021. Something like 90% of the fund's capital is invested in the index's constituents. The fund's management fee is 0.35% and its distribution rate was 2.05%. The fund's returns in view of its net asset value (NAV) reflected those of the index, coming at 25.73%, 71.67%, and 11.27% on a YTD, one-year, and 10-year basis.

Features

• It is associated with the Invesco S&P 500 Pure Value ETF.
• The index is rebalanced annually and is calculated in U.S. dollars and the South Korean won.
• The S&P 500 Pure Value Index is an index comprised of the strongest value stocks on the S&P 500.
• The index is score-weighted rather than market-cap-weighted.
• The Pure Value Index was sent off in December 2005.