S&P launches International Developed High Quality Rankings Index

By Tali David

Minneapolis, Feb. 15 - S&P Indices has launched the S&P International Developed High Quality Rankings Index, according to a press release.

The index is designed to provide exposure to non-U.S. stocks identified by S&P Quality Rankings as high quality stocks in terms of their growth and stability in earnings and dividends record, S&P said.

To be included in the index, stocks must have a float-adjusted market capitalization of at least $500 million as of each rebalancing reference date. In order to reduce turnover, the index maintains a 20% market capitalization buffer rule, which allows a stock to stay in the index if it has a ranking of A- or better and a float-adjusted market capitalization between $400 million and $500 million at rebalancing.

The Index has been licensed to PowerShares for the creation of exchanged-traded products.

"This index has an underlying value focus and therefore is a natural alternative to many actively managed value funds," vice president of Global Equity Indices Alka Banerjee said in the release. "High quality companies tend to have higher and more stable EPS growth, and our High Quality Rankings have a long track record in quantifying high quality stocks effectively."

S&P Indices maintains a variety of investable and benchmark indexes and is part of New York-based McGraw-Hill Cos.

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