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STOXX® Select Diversification Solutions
| The post-crisis world presented sellers of structured products with the challenge of providing an attractive pricing and capital protection proposition. As developed-world interest rates sank below zero, the high cost of tailoring these investment vehicles threatened the viability of the business itself. | |
| Amid this market backdrop, STOXX focused on where it could add value: enabling option price efficiency in the products, which would allow issuers to provide higher participation and greater protection to the investors.
The Select and Diversification Select indices provide the investors with a wide range of benchmarks and themes for the investor seeking an optimized benefit of capital protection, improved exposure to an asset, and higher returns.
The STOXX Select Diversification Solutions are derived from major STOXX benchmarks and globally relevant themes, resulting in the most stable and highest-yielding stocks in the final universe. The indices bundle under one roof two factors that have shown to provide stability in stock prices: a high dividend yield and a low volatility ratio. Components of both index families are weighted by the inverse of their volatility.
The reach and breadth of the Select and Diversification Select family include themes like ESG, Low Carbon and True Exposure, which further expand the possibilities for issuers, distributors and investors.
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