Stoxx said that the new index is aimed at investors seeking exposure to the well-known Stoxx Europe 600 Index, while at the same time looking to reduce the risk of currency fluctuations.
The new index will act both as a proper benchmark for actively managed funds, and to underlie exchange-traded funds and other investable products.
The Stoxx Europe 600 Hedged EUR Index replicates a hypothetical investment portfolio that is designed to represent the returns of the Stoxx Europe 600 Net Return Index while hedging the currency risk, but not the underlying constituent risk, said the company.
The index combines the performance of the underlying Stoxx Europe 600 Index with a hypothetical, rolling investment into one-month foreign exchange forward contracts.
Stoxx CEO Hartmut Graf said this new index caters to the needs of their growing global client base, and thus marks another milestone in STOXX’s global expansion.
