S&P Dow Jones Indices Launches Equal-Weight Spin on Europe Index

ETF Trends

S&P Dow Jones Indices, one of the largest providers of indices for exchange traded funds, today introduced the S&P Europe 350 Equal Weight Index, an equal weight answer to the well-known S&P Europe 350 Index.

“Despite its simplicity, equal-weighting remains one of the most popular forms of alternative weighting,” said Michael Orzano, associate director of global equity indices at S&P Dow Jones Indices, in a statement. “The S&P Europe 350 EWI allows investors to measure the European equity markets while substantially reducing the contribution of the largest companies.”

The S&P Europe 350 Index is the underlying index for the $2.75 billion iShares Europe ETF (IEV) . The index “is drawn from 17 major European markets and intends to provide investors with a tradable and easily replicable snapshot of investable Europe,” according to the index provider.

Last week, S&P Dow Jones Indices introduced the S&P Europe 350 Low Volatility High Dividend Index, which tracks the 50 highest yielding companies from the S&P Europe 350 Index that meet certain diversification, liquidity and volatility requirements. [S&P Dow Jones Launches New Dividend Low Vol Europe Index]

The S&P 350 Europe Index covers 17 European markets and includes 70% of the region’s market cap. Top-10 holdings currently include Nestle, Novartis (NVS) and HSBC (HSBC).

IEV allocates about three-quarters of its weight to the U.K., France, Switzerland and Germany. S&P Dow Jones Indices did not say in the statement if the S&P Europe 350 Equal Weight Index will soon be linked to an ETF.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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