What is the S&P MidCap 400/BARRA Value?

The S&P MidCap 400/Barra Value is a stock market index that gives investors a benchmark for mid-sized companies in the United States valued at between $1.6 billion and $6.8 billion, that are also defined as being in the ‘value’ sector due to their lower price-to-book ratio.

Where have you heard about the S&P Midcap 400/BARRA Value?

Your broker can give you information about both the differing risk profiles of investing in small, medium and large-sized companies, and of stocks considered to be in either the ‘growth’ or ‘value’ sectors. The S&P MidCap 400/BARRA Value index offers investors exposure to the medium-sized value sector in the US.

What you need to know about the S&P Midcap 400/BARRA Value.

The S&P MidCap 400/BARRA Value index measures the performance of 200 medium-sized companies in the US – half of the S&P MidCap 400 Index. This sector offers a distinct risk and return profile. Mid-sized firms are generally more dynamic than larger firms and offer a better chance of continued growth. The value index is made up of the 200 companies within the overall S&P MidCap 400 Index that have the lowest price-to-book ratios. Shares in these firms are often considered to be undervalued, and to offer a strong chance of capital appreciation once the market recognises their potential.