S&P 500 Low Volatility High Dividend Index Launched by S&P Dow Jones Indices
Index Licensed to Invesco PowerShares for ETF Development
PR Newswire

NEW YORK, Oct. 15, 2012 /PRNewswire/ -- S&P Dow Jones Indices launched today the S&P 500 Low Volatility High Dividend index which applies a low volatility screen on a high yield basket of securities drawn from the universe of S&P 500®. The Index is the first of its type designed to identify high yielding securities with low levels of volatility.

The S&P 500 Low Volatility High Dividend index has been licensed to Invesco PowerShares, for the creation and launch of an exchange traded product. Invesco PowerShares is also the licensee for the closely followed S&P 500 Low Volatility index.

The S&P 500 Low Volatility High Dividend index is designed to serve as a benchmark for income seeking equity investors. The Index seeks to measure 50 high yielding companies within the S&P 500, while meeting diversification, volatility, and tradability requirements.

"Income has been a primary focus for many investors in 2012 as dividend funds continue to draw an increasing amount of interest; however, volatility is still at the forefront of investor minds as market uncertainty continues to factor into their investment decisions," says Vinit Srivastava, director of strategy indices at S&P Dow Jones Indices. "The S&P 500 Low Volatility High Dividend index captures these two trending investment themes into one unique design and concept."

A brief synopsis of the selection of constituents for the S&P 500 Low Volatility High Dividend index is as follows:

  • All stocks in the S&P 500 are ranked in descending order by their 12-month trailing dividend yield.
  • The top 75 stocks with the highest dividend yield are selected, with the number of stocks from each GICS sector capped at 10.
  • Using available price return data for the trailing 252 trading days leading up to each index rebalancing reference date, the realized volatilities of the 75 selected highest yielding stocks are calculated.
  • The 75 selected highest yielding stocks are then ranked in ascending order by their realized volatility. The top 50 securities with the lowest realized volatility form the index.

For more information on the S&P 500 Low Volatility High Dividend index, please visit: www.spindices.com

About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, Inc., is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial AverageSM, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of institutional and retail investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide range of assets classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"), a subsidiary of The McGraw-Hill Companies, Inc. Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones").  These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.

SOURCE S&P Dow Jones Indices