S&P Dow Jones launches Low Beta and Intrinsic Value Weighted indexes

By Tali Rackner

Norfolk, Va., June 23 – S&P Dow Jones Indices announced the launch of two comprehensive global factor index families: S&P Low Beta indexes and S&P Intrinsic Value Weighted indexes.

The new index families are designed to be benchmarks or investable solutions that seek to reflect the respective factor strategy, according to a company press release.

"The launch of the S&P Low Beta and S&P Intrinsic Value Weighted index families is emblematic of an overall trend in the industry toward factor-based strategies," senior director of strategy indexes Vinit Srivastava said in the release. "For many investors, the risk premium historically associated with well-known factors like value, and low beta, can be captured transparently and efficiently through indices."

S&P said the constituents for both index families are constructed from the S&P Global Broad Market index. The Low Beta index family is a market cap weighted index that contains 70% of the S&P Global BMI with the lowest beta. The Intrinsic Value Weighted index family measures the performance by a stock's intrinsic value, which is determined by its book value and the present value of its future earnings above its cost of capital (abnormal earnings).

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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