Indices Licensed to PowerShares Canada
TORONTO, April 11, 2012 /CNW/ - S&P Indices and TMX Group Inc. announced today that they are launching two new indices designed to provide market participants with unique measuring tools for specific stock characteristics within the S&P/TSX Composite, the principal broad market measure for the Canadian equity markets.
The S&P/TSX Composite Low Volatility Index measures the performance of the 50 least volatile stocks in the S&P/TSX Composite. The Index is designed to serve as a benchmark for low volatility strategies in the Canadian stock market. Constituents are weighted relative to the inverse of their corresponding volatility, or standard deviation, with the least volatile stocks receiving the highest weights.
The S&P/TSX Composite High Beta Index will measure the performance of the 50 constituents of the Composite that are the most sensitive to changes in market returns. It is designed to serve as a benchmark for investors with a bullish strategic or tactical view of the Canadian stock market. Constituents are weighted in proportion to their market sensitivity, or beta, with the highest beta stocks receiving the highest weights. S&P Indices has licensed both the S&P/TSX Composite Low Volatility Index and the S&P/TSX Composite High Beta Index to PowerShares Canada.
Both the S&P/TSX Composite Low Volatility Index and the S&P/TSX Composite High Beta Index have been licensed by S&P Indices to PowerShares Canada to serve as the basis for potential PowerShares ETFs listed on Toronto Stock Exchange.
"We are excited to announce these two new additions to the S&P Indices' family of alternatively-weighted indices," says Abigail Etches, Director at S&P Indices. "Canadian investors and portfolio managers, much like their global counterparts, are increasingly looking for unique, yet easy-to-understand methods for benchmarking specific market segments. Product issuers, recognizing this growing need, have turned to the transparent methodology of S&P Indices' Low Volatility and High Beta indices to serve as the basis for new investing and trading strategies for their clients."
"We are extremely excited to license these two new indices," says Michael Cooke, Head of Distribution for PowerShares Canada. "We believe that a low volatility portfolio may offer protection in down cycles while still participating in upward trending cycles. In addition, we believe that a high beta portfolio allows investors to increase their exposure to the equity market without using leverage."
Both the S&P/TSX Composite Low Volatility Index and S&P/TSX Composite High Beta Index are additions to a growing family of S&P alternatively weighted indices. For more information, 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.
About TMX Group (TSX-X)
TMX Group's key subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TMX Select, Montreal Exchange, Canadian Derivatives Clearing Corporation, Natural Gas Exchange, Boston Options Exchange (BOX), Shorcan, Shorcan Energy, Equicom and other TMX Group companies provide listing markets, trading markets, clearing facilities, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montreal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London. For more information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter at http://twitter.com/tmxgroup.
For further information: