STOXX launched several new emerging markets indices along with an innovative and unique new classification system for emerging and developed markets in March 2012. STOXX expanded the index family with the addition of blue-chip, broad and size indices in August of the same year.

 

The STOXX Emerging market indices not only apply a purely rules-based methodology but are also based on a similar rules-based classification system for emerging and developed markets.

 

The STOXX market classification system is the first to classify emerging markets in a very transparent and rules-based way. Only five criteria are applied to classify the markets into emerging and developed markets. These criteria are comprehensive and comprise all of the areas investors regard as important such as macroeconomic data, market capitalization, market liquidity, free currency convertibility on on-shore and off-shore markets, and restrictions on capital flows. Using only five strong criteria also allows market participants to fully understand the system and enhances the overall transparency - of the system itself as well as of the derived emerging market indices. The data sources for these criteria are highly recognized and independent global organizations (i.e. IMF, World Bank and PwC).

 

Hence, the STOXX Emerging Market indices and their underlying country classification stand out in the array of existing concepts which not only apply a wide range of classification criteria, but are also less transparent in their final decision on how to classify a market.

 

For more information about these indices and the classification system, please see the download area below.

 

 

Further information about the new STOXX Developed and Emerging Markets indices here.