Measures large cap stocks that exhibit value characteristics. This is a float adjusted, market cap
weighted index including a selection of securities from the
Wilshire US Large-Cap Index that meet the Wilshire criteria for value. The index is an excellent
way to evaluate this sector of the market and to gauge the performance of managers focusing on this
particular style. An equal weighting of this index, along with the
Wilshire US Large-Cap Growth Index, results in approximately the same return as the Wilshire US
- The Wilshire US Large-Cap Index is equally divided into growth and value indices by float adjusted, market capitalization weight, not number of stocks.
- Growth and value is defined by looking at six factors: Price-to-earnings ratio, projected earnings growth, price-to-book ratio, dividend yield, trailing revenue growth and trailing earnings growth.
- Earnings is not the trailing twelve months' earnings but instead the projected analyst earnings for the next year as provided by Institutional/Broker/Estimate/Service.
- Stocks are then ranked according to their style score from the highest growth (lowest value) to the lowest growth (highest value) score.
- Stocks with the lower growth style scores (highest value), allowing for buffers, comprise the Wilshire US Large-Cap Value Index until their float adjusted capitalization reaches half the total capitalization of the Wilshire US Large-Cap Index.
Adjustments and Maintenance
- New stocks are added to the index monthly, as they are added to the Wilshire 5000.
- A security will be excluded from the index when it is removed from the Wilshire 5000.
- Shares outstanding and float factors are adjusted when they are changed in the Wilshire
5000 to reflect corporate events during the quarter; otherwise, shares outstanding and float
factors are updated once a quarter.