Measures small cap stocks that exhibit value characteristics. This is a float adjusted, market
cap weighted index including a selection of securities from the
Wilshire US Small-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 Small-Cap Growth Index, results in
approximately the same return as the Wilshire US Small-Cap Index.
- The Wilshire US Small-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 Small-Cap Value Index until their float adjusted capitalization reaches half the total
capitalization of the Wilshire US Small-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.