S&P/TSX launch two new indices

Standard & Poor’s and TSX Group have launched two new yield- focuses indices for the Canadian marketplace: the S&P/TSX Equity Income Index and the S&P/TSX Composite Dividend Index.

The Equity Income Index focuses on dividend income and is comprised of 50 to 75 dividend-paying stocks selected from the S&P/TSX Composite Index. It is designed to replace the S&P/TSX Income Trust Index which will lose most of its constituents on December 31, 2010.

The Composite Dividend Index is intended as a broad-based benchmark of Canadian dividend-paying stocks, and it includes all stocks in the S&P/TSX Composite with positive annual dividend yields as of the latest rebalancing of the S&P/TSX Composite.

“The launch of these two new indices is the direct result of several consultations with the Canadian investment community, including industry leaders in income investing,” says Abigail Etches, director at S&P Indices. “The S&P/TSX Equity Income Index and the S&P/TSX Composite Dividend Index will provide investors with exposure to higher yielding stocks on a consistent basis while staying true to our hallmark of a transparent, rules-based methodology.”

The launch of a new S&P/TSX index is usually followed in short order by the launch of a new iShares ETF. So far, no new product has been announced.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.