Investors need new indices that can accurately reflect sustainable mandates and underlie appropriate investment instruments such as listed derivatives to better manage and hedge portfolios.
When one of Scandinavia’s largest asset managers extended its responsible investing principles to all types of instruments, its trading arm could not use listed derivatives anymore to manage flows and risk on many equity portfolios, as existing European equity index derivatives had exposure to controversial activities banned by the firm’s responsible policies.
We devised versions of well-established STOXX benchmarks that consider responsible policies without incurring significant tracking error. Through a market consultation we identified the standard policies of leading asset owners and incorporated them into the design of the indices. Thanks to our close collaboration with Eurex, a broad range of derivatives on STOXX & DAX ESG indices are available today: EURO STOXX 50 ESG, DAX 50 ESG, STOXX Europe 600 ESG-X, STOXX USA 500 ESG-X, STOXX® Europe ESG Leaders Select 30, EURO STOXX® 50 Low Carbon and STOXX® Europe Climate Impact. Futures on the STOXX® USA 500 ESG-X Index are the first ones available on a US benchmark featuring a screening for thermal-coal mining and coal-fired power plants.
Futures on the STOXX® USA 500 ESG-X Index are the first ones available on a US benchmark featuring a screening for thermal-coal mining and coal-fired power plants.
The Qontigo Advantage
Experience in designing liquid, rules-based indices that underly some of the world’s most-traded derivatives
‘Open architecture’ philosophy allows us to partner with leading data providers, such as Sustainalytics and ISS ESG, whose ESG screening methodology’s quality is recognized worldwide
Our indices respond to specific client needs, and we collaborate with stakeholders in every step of the process to design solutions that are viable and efficient from a trading perspective
Qontigo’s STOXX Benchmark Indices cover global, regional and country markets, offering efficient exposure to each investable universe.
The Qontigo Sustainable Investment Ecosystem
Indices that increase liquidity and lower trading costs to help meet your specific and diverse sustainable investment goals
STOXX® Europe 600 ESG-X
The STOXX® Europe 600 ESG-X index is based on the STOXX® Europe 600 index, one of Europe’s key benchmarks, with standardized ESG exclusion screens applied.
STOXX® USA 500 ESG-X
The STOXX Benchmark ESG-X Indices are based on a selection of STOXX Benchmark Indices and apply standardized ESG exclusion screens. The screens are based on the responsible policies of leading asset owners and aim to reduce reputational and idiosyncratic risks.
EURO STOXX 50® ESG
The EURO STOXX 50® ESG Index is based on the EURO STOXX 50® Index, one of Europe’s flagship benchmarks. A set of standardized ESG exclusion screens, based on the responsible policies of leading asset owners, are applied with the aim to reduce reputational and idiosyncratic risks.
DAX® 50 ESG
DAX® sets the new benchmark for sustainable German equity portfolios.