S&P Dow Jones, TWSE reach development agreement, launch new index

By Tali Rackner

Minneapolis, Jan. 27 - S&P Dow Jones Indices and the Taiwan Stock Exchange signed a strategic agreement and launched their first co-branded index, the S&P/TWSE Taiwan Low Volatility High Dividend index, S&P Dow Jones announced in a press release.

The index is designed to serve as a benchmark for income-seeking equity investors, measuring the performance of 40 high-yielding companies within the S&P Taiwan BMI. It represents a balance between dividend yield and volatility, while ensuring diversification across individual stocks and sectors, the release said.

The index's stock selection criteria include a three-month average daily traded value above NT$100 million, at least one year since issuance and trading before the rebalancing date and non-zero dividend in the prior 12 months. The index is weighted by trailing 12-month dividend yield, with constituents to be re-weighted semiannually and reviewed twice a year in April and October.

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