Bloomberg launches new MVP and Pricing Power Equities indices

Bloomberg has announced the launch of the Bloomberg MVP Index and Bloomberg Pricing Power Index, adding to Bloomberg Index Services Ltd’s (BISL) suite of thematic equities indices. Bloomberg says these 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 is designed by BISL to track the performance of US large-cap companies that demonstrate exceptional fundamental qualities across Momentum (M), Value (V), Volatility (V), and Profitability (P), as per the factor model developed by Bloomberg Intelligence, added the company. This index aims to identify approximately the top 50 companies exhibiting the strongest momentum, most muted volatility, attractive valuations, and highest profitability. The companies are selected through an aggregated sector-neutral MVP score and to be selected for the Index, a security must be a member of the Bloomberg US Large Cap Index (B500 Index).

The Bloomberg Pricing Power Index is constructed to track companies that have maintained consistent and stable profit margins throughout their history, zeroing in on companies that have showcased the smallest deviations in trailing annual gross profit margins over the last five years, says Bloomberg. To be selected for the Bloomberg Pricing Power Index, a security must be a member of the Bloomberg US Large and Mid-Cap Index (US Index).

“The Bloomberg MVP and Pricing Power Indices serve as powerful tools to enable investors to capture the essence of exceptional companies and pursue alpha with strategic insight. Built upon the proprietary research from Bloomberg’s Index Research team and Bloomberg Intelligence, these indices empower investors with a new dimension of opportunity within factor investing and we’re proud to bring them to market,” said Allison Stone, head of multi-asset index product, Bloomberg Index Services Limited.

Bloomberg Terminal clients can access the indices at IN <GO> and relevant fact sheets, methodology documents, and research for the new indices are available on the Bloomberg Equities Publications page. The indices have recently been adopted by Invesco as the new underlying benchmarks for the Invesco Bloomberg Pricing Power ETF (ticker: POWA) and Invesco Bloomberg MVP Multi-Factor ETF (ticker: BMVP).

Bloomberg says it provides an independent, transparent approach to indexing for customers across the globe. Bloomberg clients can access available indices on the Bloomberg Terminal and the organisation says all research and methodology for the indices is available here.