S&P launches volatility and high beta indices
Standard & Poor’s (S&P) has launched new volatility and high beta indices that will measure specific stock characteristics within the S&P 500.
The indices will serve as the basis for future PowerShares exchange-traded funds, S&P stated.
The S&P 500 Low Volatility Index measures the performance of the 100 least volatile stocks in the S&P 500, while the S&P 500 High Beta Index will measure the performance of the stocks that are most sensitive to changes in market returns. The latter was designed to serve as a benchmark for investors with a bullish strategic or tactical view and attributed the highest weights to the highest beta stocks, S&P stated.
Senior director for US equities at S&P Indices, Craig Lazzara, said that both indices allowed investors to benchmark specific market segments and provided a basis for new investing and trading strategies.
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