S&P Dow Jones adjusts rules for growth and value stock classifications, 375 billion dollars in funds affected

According to foreign media reports on October 24, S&P Dow Jones Indices in the United States has introduced new regulations, adjusting the rules for classifying growth and value stocks. The new regulations will include intangible assets, expected earnings, and free cash flow in the evaluation factors for value stocks; the assessment standards for growth stocks will no longer reference the individual stock's momentum over the past 12 months. The new rules will take effect before the US stock market opens on December 21, local time. Funds tracking the index will need to adjust their portfolios accordingly, and approximately $375 billion in passive funds will be affected. Researchers and fund managers believe that the long-term sluggish performance of value stocks is partly due to flaws in the existing measurement standards. (CCTV Finance).