S&P Dow Jones launches factor-based S&P Japan 500 GIVI index

By Tali Rackner

Norfolk, Va., Jan. 22 – S&P Dow Jones Indices announced the launch of the S&P Japan 500 GIVI index, according to a press release.

The new index is part of the S&P GIVI (global intrinsic value index) family. It brings together low volatility and an alternative weighting scheme that weights a stock by its calculated intrinsic value, rather than market capitalization, and seeks to provide better risk-adjusted exposure to the Japan market, the release said. It is designed as a complement to the existing S&P GIVI Japan index and represents the market in a more targeted manner.

"The design of the S&P Japan 500 GIVI index is intended to provide for higher risk-adjusted returns in the mid- to long-term at a lower level of risk,” S&P senior director of strategy indexes Vinit Srivastava said in the release. “As an investable benchmark, the new index opens the door to potential product development based upon it."

S&P Dow Jones said the launch of the new index underlines the continuing popularity of the GIVI strategy in Japan, epitomized by the Government Pension Investment Fund's decision to adopt the S&P GIVI Japan index as one of the performance benchmarks in 2014.

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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