Bloomberg Expands Portfolio of Thematic Indices

Bloomberg has launched the new MVP index and pricing power index, adding to Bloomberg Index Services (BISL) suite of thematic equities indices. According to Bloomberg, the new indices are an evolution of traditional factor indices, positioned to capture the individual factors and attributes that propel top-performing companies. The Bloomberg MVP index, designed by BISL, tracks the performance of US large-cap companies that showcase fundamental qualities across momentum, value, volatility and profitability based on a factor model developed by Bloomberg Intelligence. The top 50 companies demonstrating the highest momentum, muted volatility, attractive valuations and most profitability are identified by the MVP index. An aggregated sector-neutral MVP score selects the companies – for a security to be selected for the index, it must be a member of the Bloomberg US large cap index (B500 index). Elsewhere, the Bloomberg pricing power index was developed to track companies which maintain stable profit margins, pinpointing companies that have showed the least deviations in annual gross profit margins over the last five years. A security must be a member of the Bloomberg US large and mid-cap index (US index) to be selected for the Bloomberg pricing power index.