S&P Tilt Index Series Launched By S&P Dow Jones Indices
NEW YORK, Oct. 25, 2012 /PRNewswire/ -- S&P Dow Jones Indices, the world's largest provider of financial market indices, announced today that it has launched the S&P Tilt Index Series. Covering the U.S. market, the indices are designed to tilt a given index towards securities with characteristics that are presumed desirable. The three tilt indices launched today are based upon the S&P 1500 ® which combines three leading indices, the S&P 500 ®, the S&P MidCap 400 ®, and the S&P SmallCap 600 ® to cover approximately 90% of the U.S. market capitalization. The index series has been licensed by S&P Dow Jones Indices to SSgA for the development of exchange traded products.
"The S&P Tilt indices are designed to tilt a given index towards a certain factor – value, momentum, or volatility - by overweighting some securities while underweighting others," says Vinit Srivastava, director of strategy indices at S&P Dow Jones Indices. "These indices offer investors three unique measures of gauging the performance of the S&P 1500 companies."
The three indices launched today as part of the S&P Tilt Index Series include:
- S&P 1500 Reduced Volatility Tilt Index: Weighted so that stocks with relatively low volatility are overweight relative to the S&P Composite 1500 and stocks with relatively high volatility are underweight. The Index is intended to provide diversified exposure to low relative volatility in the U.S. stock market.
- S&P 1500 Positive Momentum Tilt Index: Weighted so that stocks with relatively strong momentum are overweight relative to the S&P Composite 1500 and stocks with relatively weak momentum are underweight. The Index is intended to provide diversified exposure to positive relative momentum in the U.S. stock market.
- S&P 1500 Low Valuation Tilt Index: Weighted so that stocks with relatively cheap valuations are overweight relative to the S&P Composite 1500 and stocks with relatively expensive valuations are underweight. The Index is intended to provide diversified exposure to low relative valuation in the U.S. stock market.
Based on a selected quantitative attribute, the tilt for each of the indices within the S&P Tilt Index Series is achieved by ranking all constituents of the parent index, increasing the weights of stocks with a high ranking while decreasing the weights of stocks with a low ranking. The Index series maintains the constituents of the underlying index while adjusting constituent weights.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV