The S&P 500/Citigroup Growth Index

Definition index S&P 500 Index/Citigroup growth’

The S&P 500/Citigroup growth Index is a capitalization-weighted index developed by Standard and Poor’s in collaboration with Citigroup. It consists of a stock index, the S&P 500 and which show strong signs of growth. The S&P 500/Citigroup growth index is a numerical rating system based on three growth factors and four value factors to determine the components and their proportions.

The destruction of ‘S&P 500 Index/Citigroup growth’

The index is determined by the main factors of growth and below cost.

Growth factors:

  • Five years earnings per share growth
  • Five years sales per share growth
  • Five years, the growth rate
  • Cost factors:

  • The price of the book ratio
  • Price-cash flow
  • Price to sales ratio
  • Dividend yield
  • Index Performance

    The S&P 500/Citigroup growth Index is the basis for the Commission on securities and the S&P 500 growth etf (exchange traded Fund), whose Ticker symbol IVW. In the five-year period 2012-2017, IVW increased 162%, compared to the most common benchmark, the S&P 500 index, which rose 139%. The main reason for the anticipatory dynamics of the index of growth was the fact that the index of growth contained (and still contain) companies like Apple, Amazon, Microsoft, Facebook and Google, all high-octane growth companies during this period.

    Hazard Index

    Investors who buy passive funds such as exchange-traded funds should know that they are inherently pulse-action, because they are tied to underlying assets, which are valued by market capitalization. If a group of technology shares in the index quickly by market value, passive funds and ETFs are forced to buy shares to keep in line with the index. The demand pressure rates the stock as a result of additional growth index growth. The “benign circle” of higher prices, however, may unexpectedly break down and potentially turn into a vicious circle in which stock prices fall, reducing the value of the index and causing more selling passive means to maintain balance with the underlying index.

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