STOXX Expands Range Of Smart-Beta Indices

The extension of its suite of smart-beta indices is an important addition to the borse’s sustainable index offering.

STOXX, the operator of Deutsche Borse Group’s index business and a provider of tradable index concepts, has announced an extension of the STOXX Select and STOXX Diversification Select index families introduced last October.

STOXX now offers Low Carbon-themed indices that are optimized for structured products.

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The borse which earlier this week unveiled the EURO STOXX 50 Multi-Asset Indices today launched the new indices which combine investment themes such as Low Carbon and ESG with low volatility, high dividend and low correlation screens, thus creating hybrid index concepts.

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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. They 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.

Commenting on the launch, Matteo Andreetto, CEO of STOXX, said: “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.”

STOXX has also launched the STOXX Global Basket Select and STOXX Global Basket Diversification Select Indices which 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).

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