LONDON, Aug. 21, 2012 /PRNewswire/ -- S&P Dow Jones Indices announced today the launch of the S&P Europe 350 Low Volatility index, which is designed to measure the performance of the least volatile stocks within the S&P Europe 350, an equity index drawn from 17 major European markets, covering approximately 70% of the region's market capitalization. The launch of the S&P Europe 350 Low Volatility index follows similar low volatility launches of indexes covering emerging markets and developed countries ex-US.

The constituents of the S&P Europe 350 Low Volatility index are weighted by the inverse of their volatility, with the least-volatile stocks receiving the highest weights. The Index's sector exposure is unconstrained and dynamic, responding only to volatility signals.

Vinit Srivastava, director of strategy indices at S&P Dow Jones Indices comments, "Given the volatility in the European equity markets, the S&P Europe 350 Low Volatility index provides market participants with a unique measuring tool for specific stock characteristics within the S&P Europe 350. This new, transparent Index exhibits strong risk and return characteristics, which could be expected to continue given the existence of low volatility anomalies in the equity markets."

The S&P Europe 350 Low Volatility index follows the recent launch of the S&P 500 Low Volatility index and the S&P/TSX Composite Low Volatility index in the beginning of 2011, as well as the launch of the S&P Emerging Markets Low Volatility index and the S&P International Developed (ex US) Low Volatility index late 2011.

S&P Dow Jones Indices recently published a white paper on the low volatility effect. To access this paper, please visit http://us.spindices.com/resource-center/thought-leadership/research/.

Below is a table of S&P Europe 350 Low Volatility index's country weight (all data as of 29 June 2012):

Source: S&P Dow Jones Indices

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SOURCE S&P Dow Jones Indices