NEW YORK, Feb. 15, 2012 /PRNewswire/ -- S&P Indices announced today the launch of the S&P International Developed High Quality Rankings Index. This index is designed to provide exposure to non-US stocks identified by S&P Quality Rankings as high quality stocks in terms of growth and stability in earnings and dividends record. The Index has been licensed to PowerShares for the creation of exchanged traded products ("ETPs").
S&P Quality Rankings are generated by an algorithm drawn from stocks' per-share earnings and dividend records over the last seven years. The basic scores are calculated for earnings and dividends and are then adjusted for changes in the rate of growth, cyclicality and stability within long-term trends. The adjusted scores for earnings and dividends are then combined to yield a final ranking.
"This index has an underlying value focus, and therefore is a natural alternative to many actively managed value funds," said Alka Banerjee, Vice President of Global Equity Indices at S&P Indices. "High quality companies tend to have higher and more stable EPS growth, and our High Quality Rankings have a long track record in quantifying high quality stocks effectively."
Developed by S&P Capital IQ Equity Research, the S&P International Quality Rankings have been available since 1997 and cover 18,979 stocks as of December 31 2011. S&P's U.S. Quality Rankings have been available since 1956.
The S&P International Developed High Quality Rankings Index draws from all securities domiciled in the following countries in the S&P Developed Ex-U.S. BMI Index:
- North America: Canada
- Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and United Kingdom.
- Asia Pacific: Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea
- Middle East and Africa: Israel
Stocks must have a float-adjusted market capitalization of at least USD 500 million as of each rebalancing reference date. In order to reduce turnover, the index maintains a 20% market capitalization buffer rule. At each rebalancing, if an index constituent has a ranking of A- or above and a float-adjusted market capitalization between USD 400 and 500 million, it remains in the index.
For more information, including the complete methodology, please visit: www.standardandpoors.com/indices.
About S&P Indices
S&P Indices, a leading brand of the McGraw-Hill Companies (NYSE:MHP), maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.45 trillion is directly indexed to our indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit: www.standardandpoors.com/indices.
It is not possible to invest directly in an index. S&P Indices does not sponsor, endorse, sell, or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where S&P Indices or its affiliates do not have the necessary licenses. S&P Indices receives compensation in connection with licensing its indices to third parties.
S&P Quality Rankings are supplied by S&P Capital IQ Equity Research, which is analytically independent from S&P Indices or any other analytic activity of Standard & Poor's. S&P Quality Rankings are expressed in letter format but are not related to S&P Credit Ratings.
SOURCE S&P Indices