The S&P 500® GARP (Growth at a Reasonable Price) Index was launched in February 2019 to balance pure growth and pure valuation, so it represents most reasonable “trade-in” TTL between pure growth without “crazy valuations”, on one hand, and income, without substantial risk of dividends’ non-declaration, on the other. Popular with market participants, the index family was recently expanded to include the S&P MidCap 400 GARP® Index and the S&P SmallCap 600 GARP® Index.

To put it simply, the S&P GARP Index Series is designed to constantly select and include in its portfolio the companies with transparent increasing QoQ earnings and sales growth, as well as strong earnings momentum, serving as a good premise for constant dividend payouts, as well as solid financial strength and reasonable valuation.

The S&P GARP Index Series has consistently outperformed benchmarks since its launch in 2019, focusing on profitable companies with solid revenue growth and reasonable valuations. The S&P MidCap 400 GARP Index and the S&P SmallCap 600 GARP Index also outperformed their benchmarks in all periods examined. One of many interesting features of the S&P GARP Index is that it is significantly overweight Consumer Discretionary and underweight Financials (sic!), Consumer Staples, Utilities and Communication Services.