Russell created the industry's first style indexes to provide investors with accurate benchmarks for measuring the growth and value equity market segments. With over $3.5 trillion in assets and approximately 98% of institutional style-oriented products benchmarked to the Russell style indexes, this ground-breaking innovation has now become the industry standard and has paved the way for the creation of more style- specific benchmarks.
Russell style indexes are built using three highly representative growth and value characteristics. Our style indexes use one value characteristic, book-to-price ratio (B/P) and two growth characteristics, medium-term forecast earnings growth rate based on I/B/E/S two-year forecasts and sales-per-share growth rate based on five-year historical sales.
Index rules should be read in conjunction with supportingFTSE Russell noticesThese notices advise of advance changes in index methodology, which may not be reflected in index rules until the change effective date. The notices may also communicate revisions in index treatment in the period up to a rule change.