The S&P ADR index should allow active managers of international portfolios to benchmark their performance, while also supporting the ability of portfolio managers to build a passive portfolio of US exchange-listed securities, S&P said in a press release.
The index includes all foreign-domiciled companies that are members of the S&P Global 1200 Index and that have eligible equity-linked instruments listed on a US exchange.
Eligible US listings include any one of the following:
- Level II or Level II ADR
- global share
- ordinary share, in the case of Canadian equities.
The index is market-cap weighted with all pricing and valuation taken from the US exchange with the primary listing. At launch, the index includes 261 securities from 26 markets.
As additional S&P Global 1200 companies list eligible securities on US exchanges, these securities will be added to the index, S&P said in the announcement.
The top 10 ADR constituents listed in order of weighting:
- BP plc
- GlaxoSmithKline plc
- Novartis AG
- HSBC Holdings plc
- Royal Dutch Petroleum Company
- Vodafone Group
- TotalFinaElf SA
- Nokia Oyj
- Shell Transport & Trading Company
S&P built the new ADR Index in consultation with JP Morgan, the announcement said.