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.
“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,” said Allison Stone, head of multi-asset index product at BISL.
“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.”
Earlier this month, Bloomberg expanded its Terminal to make alternative data accessible alongside traditional financial data.
The newly introduced alternative data function, ALTD <GO>, supports equity analysts and portfolio managers with intra-quarter insights which can be incorporated into research workflows, paired with consensus estimates, company news, research and guidance – ahead of earnings announcements.