.jpg)
STOXX Ltd., the leading European index provider, today launched the Dow Jones STOXX Strong Style index series, designed to accurately represent the performance of the most style pure companies in Europe and the Euro-zone. This blue-chip index series includes six indexes and complements the already existing Dow Jones STOXX Style index family. The Dow Jones STOXX Strong Style Indexes are designed to underlie investment products, such as exchange-traded funds, mutual funds and other investment vehicles.
The Dow Jones STOXX Strong Growth 20 Index, the Dow Jones STOXX Strong Value 20 Index, the Dow Jones EURO STOXX Strong Growth 20 Index and the Dow Jones EURO STOXX Strong Value 20 Index include companies with the highest value and the highest growth scores respectively. Index components are weighted by their growth or value score. The Dow Jones STOXX Strong Style Composite 40 Index and the Dow Jones EURO STOXX Strong Style Composite 40 Index combine both style indexes for Europe and the Euro-zone.
"The Dow Jones STOXX Strong Style Indexes are the newest additions to our alternative weighting index family. The special characteristic of this new index series is the weighting according to the respective value or growth score,” said Lars Hamich, managing director of STOXX Ltd.. “This weighting is a unique approach and marks another innovative step in our effort to provide investors with measurements tools for dynamic and distinctive segments as they allow market participants to further diversify their portfolios taking advantage of returns from the strongest value and growth companies in Europe and the Euro-zone.”
The Dow Jones STOXX Strong Growth 20 Index and the Dow Jones EURO STOXX Strong Growth 20 Index have an annualized performance of 16.32% and 14.25% since inception on September 30, 2001. The indexes have outperformed the Dow Jones STOXX 50 Index and the Dow Jones EURO STOXX 50 Index by 13.64% and 8.89% respectively during the same time frame.
The Dow Jones STOXX Strong Value 20 Index and the Dow Jones EURO STOXX Strong Value 20 Index have an annualized performance of 14.62% and 16.12% since inception on September 30, 2001. The indexes have outperformed the Dow Jones STOXX 50 Index and the Dow Jones EURO STOXX 50 Index by 11.94% and 10.76% respectively during the same time frame.
The Dow Jones STOXX Strong Style Composite 40 Index and the Dow Jones EURO STOXX Strong Style Composite 40 Index have an annualized performance of 15.59% and 15.43% since their inception on September 30, 2001.
The Dow Jones STOXX Strong Growth 20 Index, the Dow Jones STOXX Strong Value 20 Index and the Dow Jones STOXX Strong Style Composite 40 Index are derived from the Dow Jones STOXX TMI Style Index, whereas the Dow Jones EURO STOXX Strong Growth 20 Index, the Dow Jones EURO STOXX Strong Value 20 Index and the Dow Jones EURO STOXX Strong Style Composite 40 Index use the Dow Jones EURO STOXX TMI Style Index as the underlying index universe.
The Dow Jones STOXX Strong Growth 20, Dow Jones STOXX Strong Value 20, Dow Jones EURO STOXX Strong Growth 20 and the Dow Jones EURO STOXX Strong Value 20 indexes cover the highest scoring stocks in each style category in Europe and the Euro-zone. Six factors are applied to define a stock’s style category with two factors being projected, two being current and two being historical: projected price/earnings (P/E) ratio, projected earnings growth, trailing P/E ratio, trailing earnings growth, price/book (P/B) ratio and dividend yield. The six factors are condensed into a single style score measuring the style purity of the company. The weight of a company is then based on its growth or value score.
The Dow Jones STOXX Strong Style Indexes are reviewed on an annual basis in September. Weighting factors are kept constant in between reviews. Price and total return indexes are calculated in Euro and U.S dollar. Daily historical data are available back to September 30, 2001, with a base value set at 1000.
Components, weightings and performance figures for the Dow Jones STOXX Strong Style Indexes can be found at www.stoxx.com.
