S&P Dow Jones launches MidCap 400, SmallCap 600 Low Volatility indexes

By Tali David

Minneapolis, Oct. 29 - S&P Dow Jones Indices LLC launched the S&P MidCap 400 Low Volatility Index and the S&P SmallCap 600 Low Volatility Index, according to a press release.

The indexes seek to measure the performance of the least volatile stocks within their respective benchmark index.

"The simple construction of the indices has resonated with investors," S&P Dow Jones director of strategy indices Vinit Srivastava said in the release. "The S&P MidCap 400 Low Volatility Index and the S&P SmallCap 600 Low Volatility Index provide investors with exposure to small and mid-cap benchmarks that exhibit similar low volatility anomaly as large cap benchmarks."

The S&P MidCap 400 Low Volatility Index measures the performance of the 80 least volatile stocks in the S&P MidCap 400.

The S&P SmallCap 600 Low Volatility Index measures the performance of the 120 least volatile stocks in the S&P SmallCap 600.

These indexes are an extension of the S&P Low Volatility Index family, which is designed to serve as benchmarks for low volatility or low variance strategies in their respective regional or country stock market, the release said. The other indexes in the family are: S&P 500 Low Volatility Index; S&P 500 Low Volatility Index (CAD Hedged); S&P BMI Emerging Markets Low Volatility Index; S&P BMI International Developed Low Volatility Index; and S&P Europe 350 Low Volatility Index.

S&P Dow Jones is part of New York-based McGraw-Hill Cos, a resource for index-based concepts, data and research.

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