Whitepaper - November 2019

STOXX European Flagship Indices For Overseas Investors

STOXX is synonymous with equity indexing in Europe. The EURO STOXX 50® Index, EURO STOXX® Index and STOXX® Europe 600 Index have for over 20 years provided liquid and effective access to the region’s stock market, based on transparent rules and an objective methodology.

A new research paper reviews the profile of these three benchmarks and the range of investment vehicles tracking them. The study examines fundamental characteristics including country and industry exposure, liquidity and tradability, and provides analysis on valuation, dividend yield and performance.

The paper is intended as a comprehensive guide particularly for non-domestic investors looking to reduce home bias and diversify their portfolios into Europe. According to one study, the average weight of domestic equities holdings in the pensions industry of 22 countries fell to 40% in 2018 from 69% in 1998.1

 

1 Willis Towers Watson, Thinking Ahead Institute, Global Pension Assets Study 2019.

Authors

Anand Venkataraman

Head of Section, Product Management

Ladi Williams

Product Manager