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STOXX Limited, a global index provider and creator of the leading European equity indices, today announced the launch of the STOXX Europe 600 Equal Weighted Index, which represents the components of the well-known STOXX Europe 600 Index irrespective of their market capitalization by weighing them equally.
The new index is designed to underlie financial products such as exchange-traded funds (ETFs) or structured products.
"With the launch of the STOXX Europe 600 Equal Weighted Index we take a new weighting approach to Europe's most widely recognized benchmark index," said Hartmut Graf, chief executive officer, STOXX Ltd. "Our new index is a superior tool for market participants who seek exposure to an equal weighted portfolio consisting of European small, mid and large cap companies, while being able to rely on the transparent and rules-based methodology of the widely recognized STOXX Europe 600 Index."
The STOXX Europe 600 Equal Weighted Index follows the same methodology as the STOXX Europe 600 Index, except for the weighting process. In the new index, all components share an equal weight, leading to a stronger exposure to small cap companies from 5% to 33%, while reducing the overall weight of large cap companies from 83% to 33%. As relative weights shift over time, the index is rebalanced quarterly and weights are brought back to equal allocations.
The STOXX Europe 600 Equal Weighted Index is reviewed simultaneously with the STOXX Europe 600 Index on a quarterly basis in March, June, September and December. It is available in price, net and gross return versions, and is calculated in Euro and U.S. Dollar (USD). Daily history is available back to December 31, 1991 for the price and net return versions, and back to December 31, 2000 for the gross return version.
Further information on the STOXX Europe 600 Equal Weighted Index is available on www.stoxx.com .
