Standard & Poor's has released a liquidity weighted index providing exposure to 75 of the eurozone's leading blue chip companies.
The S&P Euro 75 index draws its constituents from the S&P Eurozone BMI, screening each stock for size, liquidity and tradability in order to determine its eligibility.
S&P says the new creation is a response to investor demand for a replicable index with broad market exposure whose easy-to-trade elements can support listed investment vehicles such as ETFs.
S&P Indices director Gareth Parker says the Euro 75's liquid constituent basis can easily serve as an underlying for ETFs. He says the new product is designed as the premier benchmark for Eurozone liquidity.
The top ten S&P Euro 75 companies diversify across a broad variety of market sectors, including telecommunications, energy, financials and industrials. Spain's Telefonica SA is the top ranked individual company, with a weight of 6.54%. Germany and France currently hold the largest country weights, representing roughly a third of the index each.
At present, the index holds no components from Greece or Portugal due to liquidity rules. Constituents will be rebalanced annually, with all eligible securities ranked in descending order of full market capitalization according to data from the trading day in May.
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