Two New Pan Arab Smart Beta Indices Launched by S&P Dow Jones Indices

The new indices mark a significant expansion of the S&P Pan Arab Index Family…

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S&P Dow Jones Indices has announced the launch of two new smart beta indices catered to the Middle East and North Africa (MENA) market, the S&P Pan Arab High Dividend Low Volatility Index and the S&P Pan Arab Composite Shariah Dividend Index, expanding its leading family of smart beta indices.

S&P Pan Arab High Dividend Low Volatility Index is designed to serve as a benchmark for income seeking equity investors by measuring high yielding companies within the S&P Pan Arab Composite, while meeting diversification, volatility and tradability requirements. The top 75 stocks with the highest dividend yield are selected and are then ranked in ascending order by their realized volatility. The 50 stocks with the lowest realized volatility form the Index.

S&P Pan Arab Composite Shariah Dividend Index is designed to measure the performance of the highest dividend yielding stocks within the S&P Pan Arab Composite Shariah that meet the respective liquidity, dividend growth, and dividend sustainability criteria. The Index constituents are weighted by indicated annual dividend yield.

“We are excited to bring two new smart beta indices to the MENA region,” commented Alka Banerjee, MD, Global Equity Indices, S&P Dow Jones Indices. “The S&P Pan Arab High Dividend Low Volatility Index and S&P Pan Arab Composite Shariah Dividend Index have both been designed to serve as the basis for index-linked products or as benchmarks for active funds. The two new indices represent an important expansion of the S&P Pan Arab Indices as the region seeks more specialized indices. The Pan Arab market is dynamic and growing, and S&P Dow Jones Indices will continue to bring innovative indices to cater to the region’s needs.”

Source: ETFWorld.com