PRESS RELEASE
S Dow Jones Indices Launches Global SmallCap Select Index Series
New Indices Designed to Improve Long-term Risk Adjusted Performance of SmallCaps
NEW YORK, JAN 9, 2019: S Dow Jones Indices (“S DJI”), the world’s leading index provider, today announced the launch of the S Global SmallCap Select Index Series, which seeks to mitigate risks in global small-caps by excluding companies without
a consistent track-record of positive earnings.
The Index Series currently includes the following regional indices:
Each index is weighted by float market capitalization, and is a subset of the small-cap segment of the S Global BMI (Broad Market Index), except for the S/ASX Small Ordinaries Select which is built from the S/ASX Small Ordinaries. In order to be eligible for inclusion, companies must post two consecutive years of positive earnings per share.
With the exception of the S/ASX Small Ordinaries Select, the regional indices are based on methodology that excludes the smallest and least liquid
20% of companies within each country by their float market caps and median daily values traded in order to improve the
replicability of the indices. The new indices are rebalanced semi-annually.
“Extensive research on U.S. small-cap benchmarks show indices that incorporate earnings eligibility criteria, such as
the S SmallCap 600, have outperformed other small-cap benchmarks over the long-run. This new index series extends this
innovative framework to global equity markets where we have found a similar impact,” said Michael Orzano, Senior Director, Global Equity Indices at S Dow Jones Indices, “Focusing on companies that have generated positive earnings has historically provided better long-term total returns
with less volatility in global small-caps.”