STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, today introduced the iSTOXX Global Economic Growth Select 50 Index. It was licensed to Citi as an underlying for structured products. It is a complementary index to the iSTOXX Europe Economic Growth Select 50 which was launched earlier this year.
We are delighted to build on the cooperation with Citi which has been growing for several years now. After the successful launch of the iSTOXX Europe Economic Growth Select 50 Index, we are now adding a global version to the index family The iSTOXX Global Economic Growth Select 50 Index comprises stocks that combine liquidity with high dividend yields and low stock price volatility. The entire basket is tilted towards companies with a substantial revenue exposure to countries with a strong economic outlook,” said Matteo Andreetto, chief executive officer, STOXX Limited.
We are seeing a growing demand in thematic indices as a value-added solution to our clients, as they offer access to innovative concepts in systematic manner, while keeping the options cost-efficient. The theme of looking at the origin of company revenues and IMF GDP growth forecast resonated well with our client base making the Europe index a success. Following investor demand, we are extending the theme to global companies, and launching the iSTOXX Global Economic Growth Select 50 Index in cooperation with STOXX,” said Quentin Andre, global head of equity solutions sales and structuring with Citi.
The component selection of the iSTOXX Global Economic Growth Select 50 Index excludes all companies which are in contravention of UN Global Compact Principles, and whose 3-month average daily traded volume is below USD 3 million. Furthermore, it excludes stocks with a high volatility. The components are weighted according to a normalized gross domestic product score, whereby companies with the highest exposure to countries with the highest estimated economic growth (according the IMF) receive the largest weight.