Standard & Poor’s (S&P) Index Services, an index provider, has launched two new STARS indices that provide investors with exposure to the top stock picks of S&P’s equity research analysts in Europe and the United States, says the firm.
The S&P U.S. STARS Index and S&P Europe STARS Index are designed to measure the performance of U.S. and European equities ranked 5-STARS (“Strong Buy”) or 4-STARS (“Buy”) within the S&P Composite 1500 (U.S. STARS) and S&P Europe 350 (Europe STARS) respectively. Stocks ranked 5-STARS or 4-STARS by S&P are those that in the view of its equity research analysts may outperform the S&P Composite 1500 or S&P Europe 350 index over a 12-month time horizon. The S&P Europe STARS Index contains 25 large-cap European stocks.
“S&P provides independent equity research, free of investment banking and broking conflicts,” comments Eudald Canadell, managing director, S&P Index Services, Europe. “This new index will enable a wider range of investors to gain exposure to the bottom-up analysis of S&P’s European equity research team,” he adds.
Both the S&P Composite 1500 and S&P Europe 350 indices are comprised primarily of 5-STAR stocks, but may also include 4-STAR stocks when certain conditions warrant. Both indices are weighted equally, with constituent stocks reviewed every month. S&P also offers three indices which focus on high-growth-potential stocks in the US, Europe and Asia, called S&P All STARS Baskets.