stoxx index methodology guide (portfolio based indices) - STOXX.com

STOXX INDEX METHODOLOGY GUIDE
8. STOXX EQUAL WEIGHT INDICES
8.1. STOXX EQUAL WEIGHT INDICES
8.1.1. OVERVIEW
The STOXX Equal Weight indices consists of the same stocks as the standard free-float market
capitalization weighted indices, but use a different weighting scheme. Equal weight versions exist for the
STOXX Europe 600 and the EURO STOXX 50.
Universe: The index universe is defined by the main index.
Weighting scheme: The index is price-weighted.
Base value and date: Defined by the main index. Please consult the data vendor code sheet for further
details.
Index types and currencies: Defined by the main index. Please consult the data vendor code sheet for
further details.
8.1.2. INDEX REVIEW
Component selection: Same as the main index.
Review frequency: The index is reviewed in line with the main index.
Weighting factors: All components are equal-weighted. The weightings are published on the second Friday
of each quarter, one week prior to quarterly review implementation using Thursday’s closing prices.
Weighting cap factor = (100,000,000,000,000 / closing price of the stock in EUR) and rounded to
integers.
Derived indices: Not applicable.
8.1.3. ONGOING MAINTENANCE
Replacements: All changes affecting the main index, e.g. the STOXX Europe 600, also apply to the
respective STOXX Equal Weight index. The newly added component has the same weight as the deleted
one.
wf
it
wfjt
�p
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p
it
jt
wfit = new weighting factor of replacement at time (t)
T = date of closing price for weighting factor calculation
wfjt = weighting factor of index component (j) at time (t)
pjt = price in EUR of index component (j) at time (t)
= price in EUR of replacement company (i) at time (t)
pit
Fast exit: Same as the main index.
Fast entry: Same as the main index
Spin-offs: Same as the main index.
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