S&P Dow Jones intends to launch S&P 500 Capex Efficiency index

By Tali Rackner

Norfolk, Va., Jan. 15 – S&P Dow Jones Indices announced its intention to launch the S&P 500 Capex Efficiency index.

The index has been licensed to Elkhorn Investments, according to an S&P Dow Jones press release.

The S&P 500 Capex Efficiency index will measure the constituents of the S&P 500 index that have exhibited strong capital discipline in the form of efficient capital expenditures, the release said. Capital expenditures efficiency, which is captured from a company’s cash flow statements, is measured through capital expenses that have resulted in increased sales.

Capital expenditures are one of the ways in which management can provide return of capital to investors, according to S&P Dow Jones.

“The S&P 500 Capex Efficiency index will seek to measure an important and growing company dynamic for investors who are looking to companies that have efficiently channeled capital back into their business in the form of capital expenditures,” S&P Dow Jones senior director Vinit Srivastava said in the release.

S&P Dow Jones is part of New York-based McGraw-Hill Cos., a resource for index-based concepts, data and research.

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