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S&P Dow Jones Indices, the world’s largest provider of financial market indices, announced today the launch of the S&P MidCap 400 Low Volatility Index and the S&P SmallCap 600 Low Volatility Index - which seek to measure the performance of the least volatile stocks within their respective benchmark index.
Both indices have been licensed to Invesco PowerShares, for the creation and launch of an exchange traded products. Invesco PowerShares is also the licensee for the closely followed S&P 500 Low Volatility index.
"The simple construction of the indices has resonated with investors," says Vinit Srivastava, director of strategy indices at S&P Dow Jones Indices. "The S&P MidCap 400 Low Volatility Index and the S&P SmallCap 600 Low Volatility Index provide investors with exposure to small and mid-cap benchmarks that exhibit similar low volatility anomaly as large cap benchmarks."
The S&P MidCap 400 Low Volatility Index measures the performance of the 80 least volatile stocks in the S&P MidCap 400. The S&P SmallCap 600 Low Volatility Index measures the performance of the 120 least volatile stocks in the S&P SmallCap 600. These indices are an extension of the S&P Low Volatility Index family which is designed to serve as benchmarks for low volatility or low variance strategies in their respective regional or country stock market. The other indices in the family are:
S&P 500 Low Volatility Index
S&P 500 Low Volatility Index (CAD Hedged)
S&P BMI Emerging Markets Low Volatility Index
S&P BMI International Developed Low Volatility Index
S&P Europe 350 Low Volatility Index
Next Finance , November 2012
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