S&P Dow Jones launches factor-based S&P Quality Nordic index

By Tali Rackner

Norfolk, Va., Jan. 21 – S&P Dow Jones Indices announced the launch of the S&P Quality Nordic index, according to a press release.

The new index, which is designed to provide a basis for exposure to high-quality stocks in the Nordic market, offers a multi-factor approach to weighting and measuring some of the most followed stocks in the Nordics, the release said.

The S&P Quality Nordic index is comprised of the top 30 stocks from the S&P Nordic LargeMidCap index. Each stock is selected using a "high quality score" that is based on three fundamental measures: return on equity, accruals ratio and financial leverage ratio.

Every stock in the S&P Quality Nordic index is weighted by its quality score and multiplied by its float-adjusted market capitalization.

"We are excited to launch the S&P Quality Nordic index and expand our factor-based indices in this region which includes the closely followed S&P Low Volatility Nordic index,” S&P senior director of strategy indexes Vinit Srivastava said in the release.

“We are seeing a steady increase in demand for factor-based indices from our retail and institutional clients in the Nordics, and as a result, will continue to expand our suite of these indices in the region."

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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