What is the S&P SmallCap 600/BARRA Value?
The S&P SmallCap 600/Barra Value is a stock market index that gives investors a benchmark for small-sized companies in the United States valued at between $450 million and $2.1 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 SmallCap 600/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 SmallCap 600/BARRA Value index offers investors exposure to the small-sized value sector in the US.
What you need to know about the S&P SmallCap 600/BARRA Value.
The S&P SmallCap 600/BARRA Value index measures the performance of 300 small-sized companies in the US – half of the S&P SmallCap 600 Index. This sector offers a distinctive and relatively high risk and return profile to the more adventurous investor, as smaller firms often have less financial stability than larger companies. The value index is made up of the 300 companies within the overall S&P SmallCap 600 Index that have the lowest price-to-book ratios. Shares in these firms are often considered to be undervalued, and offer a strong chance of capital appreciation once the market recognises their potential.
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