A slew of exchange-traded funds (ETFs) and structured products is soon to be offered on the back of ...
A slew of exchange-traded funds (ETFs) and structured products is soon to be offered on the back of two European style-based indices recently constructed by Stoxx.
The Dow Jones Stoxx Growth and Value Indices, launched in mid-July, use the same methodology as their US counterparts and will have similar style characteristics.
It is to try to ensure the popularity of these new indices that Dow Jones has been negotiating with European life companies on the creation of linked products.
Scott Stark, managing director of Stoxx, said: 'We have been talking to various companies. We would expect to have ETFs and structured products within a few months.'
Stoxx divides the European market using three attributes: size, sector and style. Unlike some style indices, not all stocks will be classified as either growth or value ' some will be classified as neither.
The growth and value index stocks are selected from the 12,115 TMI stocks covering 95% of the free float market capitalisation, with style indices reviewed semi-annually in March and September.
Stoxx claims that this broad coverage combined with the fact that all TMI stocks are screened for liquidity, will produce indices that accurately represent the underlying market.
'The recent downturn in market sentiment has caused many investors to focus on the benefits of style investment,' insisted Stark.
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