ETF Trends
ETF Trends

S&P Dow Jones Indices, one of the largest providers of indices for exchange traded funds, introduced a new a Europe index that emphasizes low volatility, dividend-paying stocks.

The S&P Europe 350 Low Volatility High Dividend Index tracks the 50 highest yielding companies from the S&P Europe 350 Index that meet certain diversification, liquidity and volatility requirements, according to a statement from S&P Dow Jones Indices.

“To be included in the S&P Europe 350 Low Volatility High Dividend Index, a stock must be a member of the S&P Europe 350. All stocks in the selected universe are ranked in descending order by their 90-day trailing dividend yield. The top 75 stocks with the highest dividend yield are then selected, provided that the number of stocks from each GICS® sector and country is capped at 15,” said the index provider.

The S&P 350 Europe Index covers 17 European markets and includes 70% of the region’s market cap. Top-10 holdings currently include Nestle, Novartis (NYSE: NVS) and HSBC (NYSE: HBC).

The $2.6 billion iShares Europe ETF (NYSEArca: IEV) is the ETF that tracks the S&P Europe 350 Index. The U.K. and Switzerland combine for almost 47% of IEV’s country weight.

S&P Dow Jones Indices did not say in the statement if the S&P Europe 350 Low Volatility High Dividend Index will soon be linked to an ETF.

However, the index provider last week introduced the S&P Emerging Markets Domestic Demand Index and within days, it was revealed the EGShares Emerging Markets Domestic Demand ETF (NYSEArca: EMDD) would track that index.

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