STOXX Extends Suite of Smart-Beta Indices05.26.2016 By John D'Antona Editor, Traders Magazine
STOXX – ZURICH – STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, today announced an extension of the STOXX Select and STOXX Diversification Select index families that were introduced in October 2015. The newly launched indices combine investment themes such as Low Carbon and ESG with low volatility, high dividend and low correlation screens, thus creating hybrid index concepts.
The STOXX Select and STOXX Diversification Select index families are specifically designed as liquid underlyings for financial products such as structured products and exchange traded-funds. The combination of the screens in the index methodology sets an attractive pricing framework especially for structured products.
“STOXX, as the marketing agent for the DAX indices, is the leading index provider in the structured products space, both in Europe and on a global level,” said Matteo Andreetto, chief executive officer, STOXX Limited. “By extending our suite of smart-beta indices, we are again at the forefront of innovation with regard to major investment trends. For the first time, STOXX now offers Low Carbon-themed indices that are optimized for structured products as well as additional ESG indices. Thereby they are an important extension of our sustainable index offering, which includes several other indices such as the STOXX Global Climate Change Leaders Index or the STOXX Global ESG Leaders Index.”
The STOXX Select and STOXX Diversification Select Indices are derived from STOXX benchmarks, measure the performance of companies with low volatility, high dividend yield, and – in case of the STOXX Diversification Select Indices – low correlations. Index components are price-weighted with a weighting factor based on the inverse of their volatility. The additional indices of the STOXX Select and STOXX Diversification Select index family are calculated in price, net and gross return versions and are available in euro, US dollar and Swedish krona.
STOXX also launched the STOXX Global Basket Select and STOXX Global Basket Diversification Select Indices that aim to add an extra layer of diversification by investing a fixed proportion into regional STOXX Select and STOXX Diversification Select Indices (North America, Asia/Pacific and Europe). The indices are calculated in price, net and gross return and are available in euro.
Please see the table below for a full list of available indices in different currencies and versions:
|Parent Index/Universe||STOXX Select Index||STOXX Diversification Select Index|
|STOXX Europe 600||STOXX Europe Low Carbon Select 50 EUR||STOXX Europe Low Carbon Diversification Select 50 EUR|
|EURO STOXX||EURO STOXX Low Carbon Select 50 EUR||EURO STOXX Low Carbon Diversification Select 50 EUR|
|All US Stocks from the STOXX Global 1800||STOXX USA Low Carbon Select 50 USD||STOXX USA Low Carbon Diversification Select 50 USD|
|STOXX Global 1800||STOXX Global Low Carbon Select 100 EUR||STOXX Global Low Carbon Diversification Select 100 EUR|
|STOXX Global ESG Social Leaders||STOXX Global ESG Social Leaders Select 30 EUR||STOXX Global ESG Social Leaders Diversification Select 30 EUR|
|All European stocks from the STOXX Global ESG Social Leaders||STOXX Europe ESG Social Leaders Select 30 EUR||STOXX Europe ESG Social Leaders Diversification Select 30 EUR|
|STOXX Global ESG Environmental Leaders||STOXX Global ESG Environmental Leaders Select 30 EUR||STOXX Global ESG Environmental Leaders Diversification Select 30 EUR|
|All European stocks from the STOXX Global ESG Environmental Leaders||STOXX Europe ESG Environmental Leaders Select 30 EUR||STOXX Europe ESG Environmental Leaders Diversification Select 30 EUR|
|STOXX Global ESG Governance Leaders||STOXX Global ESG Governance Leaders Select 30 EUR||STOXX Global ESG Governance Leaders Diversification Select 30 EUR|
|All European stocks from the STOXX Global ESG Governance Leaders||STOXX Europe ESG Governance Leaders Select 30 EUR||STOXX Europe ESG Governance Leaders Diversification Select 30 EUR|
|STOXX North America 600||STOXX North America Select 50 EUR||STOXX North America Diversification Select 50 EUR|
|STOXX Asia/Pacific 600||STOXX Asia/Pacific Select 50 EUR||STOXX Asia/Pacific Diversification Select 50 EUR|
|STOXX Nordic Diversification Select 30 SEK||STOXX Nordic Select 30 SEK||STOXX Nordic Diversification Select 30 SEK|
|–||STOXX Global Basket Select EUR||STOXX Global Basket Diversification Select EUR|
Please visit www.stoxx.com for further information.
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