Frankfurt-based index provider Solactive AG has launched the Solactive Swiss Equal-Weight Net Total Return Index, designed to represent the performance of large cap stocks in Switzerland and based on an equal-weight approach.
The Index has been licensed to UBS in order to be used as underlying for the UBS Open End PERLES (EQLCH) available on the SIX Structured Products Exchange. It selects the top 20 stocks according to market capitalisation. Stocks will have to be listed and domiciled in Switzerland , and have a 3 month average daily volume of CHF 5m or more.
Steffen Scheuble, CEO of Solactive, commented: “We are pleased to fill in another gap in the market for UBS, with the launch of this equal-weight index following the Swiss market via its top 20 blue chips, which offers a new approach to a well-known market.”
Dominik Gottet, Equity Derivatives expert at UBS, added: “With our UBS Open End PERLES certificate on the Solactive Swiss Equal-Weight Index we provide an equity-linked participation in Switzerland’s 20 largest companies by market capitalization while ensuring a highly flexible, up-to-date positioning thanks to quarterly rebalancing. Additionally, the equal weighting of the index provides higher diversification and prevents concentration risk, due to a lower weight of the three Swiss heavyweights Nestlé, Novartis and Roche.”
The index will be adjusted on a quarterly basis in March, June, September and December.