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BSE Launches New SmallCap 500 Index & Factor Benchmarks
9 Mar
Summary
- BSE introduced the SmallCap 500 Index and four factor-based indices.
- New indices track quality, momentum, low volatility, and value factors.
- These benchmarks support passive investment products and PMS strategies.
BSE Index Services recently launched the BSE SmallCap 500 Index, an expansion of its equity benchmark offerings. This new index comprises companies drawn from both the BSE 250 SmallCap and BSE 250 Microcap indices.
Complementing the SmallCap 500, four new factor-based indices have been introduced: BSE SmallCap 500 Quality 50, Momentum 50, Low Volatility 50, and Enhanced Value 50. Each of these indices selects 50 companies based on specific factor scores, providing investors with targeted exposure.
The Quality 50 index focuses on companies with superior quality metrics. The Momentum 50 index tracks stocks demonstrating strong performance persistence. The Low Volatility 50 index identifies the least volatile stocks, while the Enhanced Value 50 targets companies with attractive valuations.
All five indices share a base value of 1,000 and a starting date of September 19, 2005. They undergo quarterly reconstitution and include a 90% stock trading frequency criterion. These benchmarks aim to support product innovation for asset managers and institutional investors, serving as underlying assets for passive investment products and for benchmarking various investment strategies.
