Products April 2, 2008

STOXX Indexes Licensed for German ETFs

April 2, 2008 (PLANSPONSOR.com) - STOXX Ltd., a European index provider, has licensed several Dow Jones STOXX Strong Style Indexes to underlie four exchange-traded funds (ETFs).
Reported by

According to a press release, the Dow Jones EURO STOXX 50, Dow Jones STOXX Strong Growth 20, Dow Jones STOXX Strong Value 20 and Dow Jones STOXX Strong Style Composite 40 indexes have been licensed to ETFlab Investment GmbH to underlie four exchange-traded funds (ETFs) listed at Deutsche Boerse, Germany.

This is the first time that the Dow Jones STOXX Style indexes have been licensed to underlie ETFs.

Launched on June 4, 2007, the Dow Jones STOXX Strong Style indexes are designed to accurately represent the performance of the most style pure companies in Western Europe, covering the highest scoring stocks in each style category, according to a press release.  

The Dow Jones STOXX Strong Growth 20 Index and Dow Jones STOXX Strong Value 20 Index include companies with the highest growth and the highest value scores, respectively, and are weighted by their growth or value score. The Dow Jones STOXX Strong Style Composite 40 Index combines both style indexes for Western Europe. They are the only pan-European blue-chip indexes for growth and value companies, according to a press release.

Six Factors

For the Dow Jones STOXX Style indexes, six factors are applied to define a stock’s style category with two factors being projected, two being current and two being historical:

  • projected price/earnings (P/E) ratio,
  • projected earnings growth,
  • trailing P/E ratio,
  • trailing earnings growth,
  • price/book (P/B) ratio and
  • dividend yield.

The six factors are condensed into a single style score measuring the style purity of the company. The weight of a company is then based on its growth or value score.

Launched on February 28, 1998, the Dow Jones EURO STOXX 50 Index provides a blue-chip representation of supersector leaders in the Eurozone covering Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

The Dow Jones STOXX Strong Growth 20 Index, Dow Jones STOXX Strong Value 20 Index and Dow Jones STOXX Strong Style Composite 40 Index are derived from the Dow Jones STOXX TMI Style Index. The Dow Jones EURO STOXX 50 Index captures approximately 60% of the free-float market capitalization of the Dow Jones EURO STOXX TMI Index.

Components, weightings and performance figures for the Dow Jones STOXX Strong Style Indexes and Dow Jones EURO STOXX 50 Index can be found at http://www.stoxx.com .

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