S&P Dow Jones Indices Bolsters its South Africa Factor-Based Index Range with S&P Quality South Africa Index

S&P Dow Jones Indices announced the launch of the S&P Quality South Africa Index which is designed to measure high quality stocks in the South African equity market. The Index has been licensed to Satrix for the development of a….

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The S&P Quality South Africa Index is comprised of the top quintile (20 percent) of stocks from the S&P South Africa Composite Index which are selected using a “high quality score” that is calculated based on three fundamental measures: return on equity, accruals ratio and financial leverage ratio. Each stock in the S&P Quality South Africa Index is weighted by its quality score and multiplied by its float-adjusted market capitalization.

Vinit Srivastava, Senior Director, Strategy Indices, S&P Dow Jones Indices comments, “We are proud to continue to expand the range of factor-based indices in South Africa with today’s launch of the S&P Quality South Africa Index.  We now have the widest range of factor-based indices in the region, which speaks to our commitment to Africa and our ability to create innovative indices.” 

Helena Conradie, CEO, Satrix, added, “We are extremely excited to license the S&P Quality South Africa Index from S&P Dow Jones Indices.  The combination of the well-established Satrix brand, S&P DJI’s strong data management, as well as our combined research capabilities, makes this a natural fit for us. We believe the sustained domestic and international growth of the passive industry will remain robust. S&P DJI’s burgeoning presence in South Africa is welcome and should lead to greater efficiencies in the local industry from which investors will ultimately benefit.”

The S&P Quality South Africa Index joins the following factor-based indices already available for the country:

–  S&P Low Volatility South Africa Index

–  S&P Dividend Aristocrats South Africa Index

–  S&P Momentum South Africa Index

–  S&P Equal Weight South Africa 50 Index

–  S&P GIVI South Africa Index Family

o  S&P GIVI South Africa Composite Index

o  S&P GIVI South Africa Financials Index

o  S&P GIVI South Africa Industrials Index

o  S&P GIVI South Africa Resources Index

o  S&P GIVI South Africa Index

Source: ETFWorld.com