Growth Target Indexes

The growth factor has historically shown explanatory power in risk forecasting and netting returns — and has historically demonstrated low correlation to other factors.1 MSCI Growth Target Indexes are designed to represent the performance of a strategy that seeks higher exposure to this influential factor.

Target benefits
Get clarity on your growth strategy

Measure with transparency and flexibility

Peer into growth strategies across geographies, sectors and market-cap sizes 

Identify potential drivers of performance

Understand factor performance without the noise of unintended exposures.

Seek out diversification

Measure long-term returns that feature low correlation to other factors.

Practical indexes, informed by research

Growth indexes often suffer from simple selection models that lead to unintended exposures.

 

Our indexes can help investors seeking to mitigate overexposure to lower performing, high-growth companies by applying growth at a reasonable price (GARP) strategy. Our GARP method controls for reasonable levels of volatility, yield and quality, as well as the value factor, to help investors seeking to avoid overpaying for potential growth.

¹ https://www.msci.com/documents/1296102/8473352/MSCI-SingleFactor-Growth.pdf