S&P Dow Jones Indices announced the expansion of the factor-based indices in South Africa with the launch of the S&P GIVI™ South Africa Indices….
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The series is the first of its kind in the dynamic South African market to combine lower volatility with a factor-based weighting scheme that weights a stock by its calculated intrinsic value, rather than market capitalization.
As the latest additions to S&P DJI’s renowned S&P GIVI (Global Intrinsic Value Index) line-up, the S&P GIVI South Africa Indices seek to provide investors with a better risk adjusted measure to the South African equity market. The suite applies the standard GIVI methodology, which combines two important investment ideas – low volatility and intrinsic value weighting.
Under this umbrella is a cluster of four indices that provide more precise measures of market segments:
– S&P GIVI South Africa Top 50
– S&P GIVI South Africa Industrials
– S&P GIVI South Africa Financials
– S&P GIVI South Africa Resources.
S&P DJI launched the headline S&P GIVI South Africa Composite in April of this year.
“We have seen a growing interest in factor-based indices in the South African market and this launch adds to our line-up of such indices, which includes the Low Volatility, Dividend Aristocrats, and the headline GIVI indices,” observes Vinit Srivastava, Senior Director of Strategy Indices at S&P Dow Jones Indices. “The S&P GIVI South Africa Indices provide an alternatively weighted approach that innovatively incorporates a low volatility strategy. The index suite opens the door to potential product development based on the index series, and is another milestone for S&P DJI in South Africa since the company opened its local office in September 2013.”
Source: ETFWorld.com
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