S&P Introduces New Versions of S&P 500

The S&P 500 Low Volatility Index measures the performance of the 100 least volatile stocks in the S&P 500. According to the announcement, the Index is designed to serve as a benchmark for low volatility or low variance strategies in the U.S. stock market. Constituents are weighted relative to the inverse of their corresponding volatility, with the least volatile stocks receiving the highest weights.  

The S&P 500 High Beta Index will measure the performance of the 100 constituents of the S&P 500 that are the most sensitive to changes in market returns. It is designed to serve as a benchmark for investors with a bullish strategic or tactical view of the U.S. stock market. Constituents are weighted in proportion to their market sensitivity, or beta, with the highest-beta stocks receiving the highest weights.  

Both the S&P 500 Low Volatility Index and the S&P 500 High Beta Index will serve as the basis for future PowerShares ETFs.