STOXX, a global index provider, has launched the STOXX Optimized Country Indices for select emerging markets, as well as that of the STOXX Optimized Asia Select Index.
The country indices are available for Brazil, Chile, China, Colombia, Egypt, India, Indonesia, Israel, Malaysia, Mexico, the Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand, Turkey and Vietnam. All new indices are part of the STOXX Optimized Index family.
The STOXX Optimized Country Indices are available in two versions: the local indices represent a variable number of companies – with a maximum of 30 for each country – which are listed on the respective markets local stock exchanges. Furthermore, a depository receipt (DR) version which includes DRs that are listed on London Stock Exchange, New York Stock Exchange or NASDAQ, is calculated for the following countries: Brazil, India, Mexico, Russia and China.
The STOXX Optimized Asia Select Index covers all companies which are based in Hong Kong, Singapore, South Korea and Taiwan, and are listed on a North American stock exchange.
The STOXX Optimized Country and STOXX Asia Select indices follow a similar methodology as the STOXX Optimized Indices.According to STOXX, the most defining features of this index family is, that it does not only take into account the average daily trading value (ADTV) for stock selection but also for the derivation of the index constituents’ weights.
In case of large discrepancies between a listing’s market capitalization and its liquidity, the initial weight derived from a constituent’s market capitalization will be decreased to ensure tradability of the index, said STOXX.