S&P Dow Jones Indices launches Pan-Asia Low Volatility product
S&P Dow Jones Indices has launched a Pan-Asian Low Volatility index measuring the performance of the 50 least volatile stocks across the region, including Australia, but excluding New Zealand.
The index is designed to act as a benchmark for low-volatility or low-variance strategies in Asia.
S&P DJI also announced that it is launching risk control indices based on the new index, with target volatility levels of 4%, 5%, 8%, 10% and 15% in USD, EUR, and SEK.
Vinit Srivastava, director, strategy indices at S&P DJI, said: “Low volatility indices offer a tool for investors who are increasingly looking for ways to include volatility controls into their portfolio. This new set of indices emphasizes our continuing commitment to expanding our growing family of indices in Asia.”
The new index considers companies based in the following countries: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, and Thailand.
S&P DJI’s series of low volatility index products also cover Global, North American, European, and Emerging equity markets.