S&P launches two smart beta indices in Middle East

Standard and PoorsS&P Dow Jones Indices has launched two indices for the Middle East and North African markets that focus on stocks that pay high dividends.

The S&P Pan Arab Low Volatility High Dividend Index is formed by taking the 75 stocks from the S&P Pan Arab Composite index with the highest dividend yields, ranking them according to their volatility, and discarding the most volatile 25 stocks.

The S&P Pan Arab Composite Shariah Dividend Index includes the highest dividend paying stocks that are consistent with Islamic finance principles.

“The two new indices represent an important expansion of the S&P Pan Arab Indices as the region seeks more specialised indices,” says Alka Banerjee, managing director, global equity indices, S&P Dow Jones Indices

The two indices are considered ‘smart beta’ because they employ weighting methods other than the conventional means of weighting index components by market capitalisation.

©2015 funds global mena

Related Articles