Higher dividend growth among a value stock index relative to a growth index is a result (or benefit) of reconstitution and rebalancing rules, according to Chaves and Arnott.
Rebalancing and the Value Effect by Denis Chaves and Robert Arnott of Research Affiliates looked into how reconstitution and rebalancing within growth and value indexes contributed to the value premium.
Mr Chaves's research finds that the majority of congregations are engaged in short-term emergency programmes, such as soup kitchens, not the sort of long-term personal efforts they are especially praised for.