The selection of equities, listed on NYSE and NASDAQ, is updated dynamically by machine learning at market closure every night
Stocks are screened for strong fundamentals, controling for earnings stability and targeting medium performance and volatility
An attractive share price, indicative of 'value', refers to fundamentals - book valuation, company revenues (sales) and cash from operations
- Price to Book (P/B) is screened for attractive low-to-average values
- Price to Revenue (P/S) is also screened for low-to-average values
- Price to Cash Flow (P/CF) targets below average & average ratios
Earnings - supportive of company value in the long term - are screened by yield (average and above average) and for per-share stability over 4 years
- EV/EBIT measures earnings accounting for depreciation and amortization but before interest and tax (EBIT) generated by capital employed (Entreprise Value or EV, measured by market cap + debt - cash) - aiming to exclude higher than average ratios which may be indicative of stock overvaluation
- An earnings-per-share stability score selects companies with a fairly regular earnings history over the past 4 years, weighed by quarter
SPDR® Portfolio S&P 500® Value ETF