Index provider Stoxx has launched the Eurostoxx 50 Dividend Points Futures index, which it has licensed to Lyxor to serve as the underlying for a new ETF.
The benchmark measures the performance of a hypothetical portfolio, in which an equal amount is invested into one to five year Eurex futures contracts, listed on the Eurostoxx 50 Dividend Points (DVP).
DVP is a calculation product, providing pure dividend data of the Eurostoxx 50 index. The DVP was licensed to serve as the underlying for the Eurex futures contracts in June 2008.
These futures contracts are fully collateralised with a daily investment into the Eonia (Euro Over Night Index Average) market.
Interest earned from this collateralisation is re-invested into the futures portfolio on a daily basis.
The index will serve as the underlying for a new Lyxor ETF, which is due to be unveiled in the coming weeks.
Stoxx chief executive officer Hartmut Graf says: "Dividends as a separate asset class are becoming directly investable for the first time through this new index."
Lyxor global head of ETFs Isabelle Bourcier says: "This new index constitutes an additional building block to investors seeking diversification and a reduced volatility."
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress