STOXX licenses Select Dividend 30 Index to Mirae AM for smart beta ETF

Jul 4th, 2016 | By | Category: ETF and Index News

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Global index provider STOXX has licensed its EURO STOXX Select Dividend 30 index to Korean asset manager Mirae Asset Global Investments to underlie a new smart beta exchange traded fund, which is listed on the Korean Stock Exchange today.

Matteo Andreetto, chief executive officer, Stoxx

Matteo Andreetto, Chief Executive Officer, Stoxx.

The underlying universe of the EURO STOXX Select Dividend 30 index is the EURO STOXX Index. It measures the performance of the 30 highest dividend-yielding stocks relative to their home market. To be included in the EURO STOXX Select Dividend 30 Index, stocks must have a positive, five-year dividend-per-share (DPS) growth rate and a defined dividend to earnings-per-share (EPS) ratio. For the selection, components are sorted by an outperformance factor to their home market and ranked accordingly. A minimum liquidity level and a buffer rule are applied.

The index is also weighted based on net-dividend yields, with an additional weighting cap of 15% for individual components. It is reviewed on an annual basis in March and is calculated in price, net and gross return versions.

Matteo Andreetto, chief executive officer, STOXX Limited, said: “The EURO STOXX Select Dividend 30 Index is part of STOXX’s innovative smart-beta offering. As we weigh the components in this index by dividend yield rather than market cap, it offers direct access to the performance of high-dividend paying companies.”

Seo Yoo Seok, chief officer of the ETF Business Unit, Mirae Asset Global Investments, added: “We are pleased to license the EURO STOXX Select Dividend 30 Index as the underlying for our ETF in Korea. We are providing a variety of investment vehicles to investors, so that we can meet the various demand of the local market. In that sense, this partnership will pave the way to achieve our vision.”

STOXX has made several announcements this week regarding licensing its indexes for ETFs listed this week on the Tokyo Stock Exchange and the Hong Kong Stock Exchange.

At the time of writing it was unclear what the ETF is called and what its total expense ratio is.

The EURO STOXX Select Dividend 30 index is used as the underlying index for a number of ETFs listed on exchanges globally. In the UK, on the London Stock Exchange, they include: db x-trackers Euro Stoxx Select Dividend 30 UCITS ETF (XD3E) has a TER of 0.30% and iShares EURO STOXX Select Dividend 30 UCITS ETF (EXSG) has a TER of 0.31%.

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