Qontigo expands the STOXX Factor Index suite to include ESG-screened indices

Financial intelligence provider Qontigo announced expanding the STOXX Factor Index suite to include a group of environmental, social and governance (ESG) -screened indices. The STOXX ESG-X Factor Indices offer ESG-screened indices with similar levels of factor exposures as the STOXX Factor Indices, but limiting unintended exposures. The factor exposures are developed from institutionally tested analytics of Axioma Factor Risk Models.

With the new addition, STOXX index portfolio includes ESG-screened versions of over 50 benchmarks that meet the criteria of leading asset owners. The STOXX Factor Index suite includes ESG-X versions of global, regional and emerging markets benchmarks with ESG-X versions of the EURO STOXX 50 and the STOXX Europe 600. The ESG screening procedure is based on independent global provider of ESG data Sustainalytics’ expertise. Companies dealing in controversial products such as weapons, tobacco production and thermal coal, along with companies in breach of the Global Standards Screening principles, are excluded.

Qontigo launches a family of ESG-screened indices

Holger Wohlenberg, Chief Business Officer of Qontigo commented:

Built with our institutional factor expertise and ESG-screened index construction rules, these indices offer a new tool to help factor investors achieve their sustainable investing strategies. We are pleased to offer these alongside the recently launched STOXX Factor Indices as two, parallel families with the highest precision factor exposures for benchmarking and investment management.

The STOXX ESG-X Factor Indices encompass the signal factors of Value, Momentum, Size, Low Risk, Quality – and a Multi-Factor index that combines all five signals. The indices are available for Europe, Asia-Pacific, Japan, US and globally.

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