Enhanced Value Indexes
MSCI Enhanced Value Indexes are factor indexes designed to maximize their exposure to companies that exhibit higher value characteristics compared to the parent universe of securities. While capitalization weighted indexes aim to represent the broad market beta, additional sources of systematic return could be represented through alternatively weighted indexes.
Target benefitsIdentify value investing pitfalls
Implement across regions and markets
Indexes support managed value strategies across geographies, sectors and market-cap sizes .
Combine multiple measures of value
Apply several valuation ratio descriptors on a sector-relative basis to address “value traps”.
Incorporate sector constraints
Indexes mirror sector allocations of parent index with goal of mitigating risk of extreme events.
How we build our indexes
Each Enhanced Value Index is constructed by selecting a set number of securities with the highest value scores from the parent index. The market capitalization weight of each security is then adjusted based on its value score.
Our indexes aim to reflect the performance of an enhanced value strategy across geographies and markets, including the U.S., Japan, Europe and emerging markets, as well as for small-cap equities for the U.S.
Enhanced Value IndexesView performance details, fact sheets and more
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For further details,
Enhanced Value index resources
Factor focus: value
Read more about the indexes that aim to address the pitfalls of value investing.
Finding value: understanding factor investing
How can value investing be implemented in passive portfolios?
