Nordic Low Volatility Index launched by S&P DJI
A selection of the 30 least volatile stocks in the S&P Nordic Broad Market Index – covering Denmark, Finland, Norway and Sweden – make up the constituents of the S&P Nordic Low Volatility Index, launched as part of a range of low volatility indices.
The new index is intended to serve as a benchmark for low volatility strategies in the Nordic equity market, and as a potential basis for future investment products, said Vinit Srivastava, senior director of Strategy Indices at S&P Dow Jones Indices.
As with other indices in the range, the Nordic index gives the least volatile stocks the highest weightings. Volatility is defined as the standard deviation of the security’s daily price returns over the previous 252 trading days.