S&P announces launch of two new indexes to its High Beta family

By Tali David

Minneapolis, Feb. 23 - S&P Indices has launched the S&P BMI International Developed High Beta Index and the S&P BMI Emerging Markets High Beta Index, according to a press release.

S&P said the indexes measure the performance of 200 stocks in their respective markets most sensitive to changes in market returns.

They are designed to serve as benchmarks for investors who want to take advantage of market volatility by employing a bullish strategic or tactical view of companies. Constituents are weighted relative to their level of market sensitivity, with the most sensitive stocks receiving the highest weights.

The international developed index is comprised of the 200 most market-sensitive constituents within the S&P Developed Ex-U.S.-Korea LargeMidCap Index, S&P said.

The emerging markets index includes 200 of the most market-sensitive constituents within the S&P Emerging Plus LargeMidCap Index.

"Using a methodology which is simple and transparent, the S&P International Developed and Emerging Markets High Beta Indices are designed to show the performance of stocks culled from their respective benchmarks that are most sensitive to changes in market returns," vice president of Strategy and Global Equity Indices Alka Banerjee said in the release.

The indexes have been licensed to Invesco PowerShares, which is launching exchange-traded funds based on them.

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

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