STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a provider of innovative and tradable index concepts, has announced that the newly launched iSTOXX FactSet Thematic Indices that capture megatrends in investing have been licensed to iShares to underlie four exchange-traded funds (ETFs). iShares is a provider of ETFs, owned by BlackRock.
The iSTOXX FactSet Thematic Indices are comprised of companies from selected countries that are exposed to a defined set of the following themes: Ageing Population, Automation & Robotics,
Digitalization and Breakthrough Healthcare.
Matteo Andreetto, STOXX
Matteo Andreetto, chief executive officer, STOXX Limited, commented:
Research shows that the four disruptive megatrends captured by the iSTOXX FactSet Thematic Indices will play a major role in the transition towards a digital, highly technological world that seeks to find alternatives to current healthcare approaches and effective solutions related to an increasing life expectancy. The indices identify the companies that are positioned towards these long-term structural trends and thereby drive social, economic and environmental change which, in the future, can have a substantial impact on their performance.”
Tom Fekete, head of product for iShares EMEA at BlackRock, added:
The iSTOXX FactSet Thematic Indices look to capture the opportunities created by long-term structural trends. They use highly detailed revenue analysis to identify the companies most aligned to these trends. Ultimately, these ETFs are a new set of investment tools that investors can use to express their views on these themes, in a transparent, global and cost-efficient way.”
Jeremy Zhou, head of indexing at FactSet said:
Identifying specific theme-related industries in a systematic and precise manner has always been a challenge. By leveraging the FactSet Revere Business Industry Classification System (FactSet RBICS), with its more than 1400 granular industry levels to assign company exposures, STOXX and BlackRock have selected an ideal solution for delivering such precision into the thematic portfolio construction process.”
The index universe for the iSTOXX FactSet Thematic Indices is defined as stocks within the STOXX Global Total Market Index that are classified as belonging to a defined set of developed and emerging countries. To be eligible for inclusion, the companies have to derive more than 50% of their most recent total annual revenues from business activities linked to Ageing Population, Automation & Robotics, Digitalization or Breakthrough Healthcare. Additionally, the companies’ 3-month average daily trading volume (ADTV) has to be greater than one million euro and the free-float market capitalization greater than 200 million euro. To identify eligible firms and ensure they derive 50% or more of their revenues from the themes defined above, STOXX has partnered with FactSet Revere, a leading taxonomy expert, to use the FactSet Revere Business Industry Classification System (FactSet RBICS).
Each iSTOXX FactSet Thematic Index is aimed to have a minimum number of 80 constituents at each review: if the screening process results to be too restrictive for an index, the revenue filter is progressively lowered in steps of 5% for that particular index, until the number of constituents is equal to or greater than 80.
The iSTOXX FactSet Thematic Indices are equal-weighted. They are calculated in price, net return and gross return versions and are available in euro and US dollar. The base date is Jun. 20, 2011, with the base value set at 1,000. The indices are reviewed annually in June.