STOXX Launches Max Traded 200 Index
|October 29, 2012|
STOXX has launched a new index of global equities, offering investors a way to put their money in the world’s most highly-traded companies.
Constituents of the STOXX+ Global Max Traded 200 index have to pass a screening process, based on a minimum market size and minimum reported on-exchange trading volume. The index’s members come from equities listed within three major time zones to ensure a cross-section of global companies.
The STOXX+ Global Max Traded 200 index’s minimum capitalisation requirement is €5 billion and constituents must have a minimum three-month average daily trading value (ADTV3M) of €25 million.
The three global time zones used by STOXX for constituent selection are Europe, Asia and the Americas. Within each time zone, the top 50 companies by ADTV3M are selected as index components, while the remaining 50 stocks in the 200-stock index are chosen by maximum ADTV3M only, irrespective of the time zone of their listing.
“The new index offers market participants an innovative and rules-based tool to participate in the performance of the 200 most traded companies worldwide,” said Hartmut Graf, chief executive officer, STOXX Limited.
Index trading costs and the tradeability of index constituents are a topic of increasing interest for the tracker fund business.