Deutsche Boerse has launched the DivMSDax Index, a blue-chip index benchmarking the 15 highest dividend-yielding mid- and small-cap stocks traded on the German market.
The index provider said the new index is aimed at investors seeking long-term, value-based investment strategies and has been designed to underlie financial products such as exchange-traded funds (ETFs), structured products and certificates. UniCredit Bank AG has already issued certificates based on price and total return versions of the index.
"Dividend-based investing is a simple and reliable approach for market participants with a conservative, long-term investment horizon," said chief executive Hartmut Graf.
The index universe is defined as all components of the MDax and SDax, which measure the top 50 mid-cap and top 50 small-cap stocks traded in Germany, respectively. The companies are ranked by dividend yield and the first 15 stocks are added to the index. Stocks also must have an average daily trading volume equal to or higher than €250,000 to be eligible.
The DivMSDax is weighted by float-adjusted market capitalisation, while individual component weights are capped at 10%. The index is rebalanced quarterly and reviewed annually in September.
Stoxx is the marketing agent for the indices of Deutsche Boerse and the SIX Group, including the Dax and SMI indices.