S&P Indices launches S&P Latin America ADR Index with 25 constituents

By Tali David

Minneapolis, Dec. 19 - S&P Indices announced the launch of the S&P Latin America ADR Index, according to a press release.

The index is comprised of 25 Latin American companies that offer American depositary receipt programs or have global or ordinary shares listed on one of the primary U.S. exchanges, S&P said.

"Many Latin American equity markets have high costs of trading and can be difficult to access directly," associate director of Global Equity Indices at S&P Indices Michael Orzano said in the release.

"The S&P Latin America ADR Index is designed to be representative of the Latin American equity market, yet efficient to replicate," Orzano added in the release.

The index includes the 25 most liquid securities based on three-month average daily value traded that meet minimum size and liquidity requirements. Constituents are weighted by float-adjusted market capitalization with modifications to enhance diversification. Rebalancing takes place twice a year. Single stock weights are capped at 10% while countries are limited to 60% at each rebalancing.

S&P also unveiled risk-control versions of the S&P Latin America ADR Index that dynamically adjust to target an 8%, 10%, 12%, 15% or 18% level of volatility.

The launch of the S&P Latin America ADR Index follows S&P Indices' introduction of the S&P Latin America Infrastructure Index and the S&P MILA 40 earlier in the year.

S&P Indices is part of New York-based McGraw-Hill Cos.

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