S&P Dow Jones Indices (S&P DJI) has added the S&P Quality Nordic Index to its rapidly expanding global lineup of factor-based indices.
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 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 capitalisation.
Vinit Srivastava, Senior Director, Strategy Indices, S&P Dow Jones Indices, says: “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. 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.”