News & Research

Changes were announced as part of the March regular review, which also saw the introduction of methodology changes to have the indices aligned with the new ESMA fund naming guidelines.

Three iShares ETFs will switch to multifactor indices designed by STOXX and BlackRock, expanding an existing collaboration. The indices implement optimized strategies targeting risk premia while controlling for risk, and additionally screen out companies based on controversial activities and carbon emissions.

The next-generation net zero indices focus on a real-world view of the global low-carbon transition, and offer investors the tools and advanced data to steer capital towards companies driving the decarbonization journey.

Changes were announced as part of the December regular review of the DAX 50 ESG, DAX 50 ESG+, DAX 30 ESG, DAX ESG Target, DAX ESG Screened, MDAX ESG+, MDAX ESG Screened and DAX indices.

Returns from fossil fuel stocks tend to be linked to short-term moves in energy prices. Excluding the sector can help portfolios over the long term, particularly when integrated into a broader set of ESG criteria.

New regulation and industry efforts point to sources of portfolio risk — particularly of the Social ESG type — for both developers and deployers of AI systems. As the technology advances quickly, governments and companies are stepping up efforts to ensure it is not prone to misuse and abuse.

The TRFs were listed on September 30, expanding the leading pan-European benchmark’s trading ecosystem. TRFs have seen strong demand from market participants as a way to efficiently gain exposure to price-plus-dividend returns of shares and indices.

The STOXX® Europe 600 SRI index is aligned with the new ESMA guidelines on fund names. Investors, meanwhile, will have a say whether other derivatives’ underlying methodologies will change. We asked experts from Eurex and STOXX what this means for the segment.

Changes were announced as part of the September regular review of the DAX 50 ESG, DAX 50 ESG+, DAX 30 ESG, DAX ESG Target, DAX ESG Screened, MDAX ESG+, MDAX ESG Screened and DAX indices.

New ESMA rules establish which funds can carry terms such as ‘ESG’ or ‘SRI’ in their names. While the guidelines are designed for funds, they are likely to impact the names and methodologies of underlying indices too.

A portfolio’s decarbonization becomes more difficult once an emissions reduction of 60% is achieved, as high-emissions sectors become depleted. Thereafter, the portfolio construction approach — whether exclusion or optimization — will make a difference to the resulting tracking error and size of the portfolio.

US stocks rose in June as investors weighed the prospects for interest-rate cuts amid slowing inflation. European shares fell as results from the European Parliamentary elections increased political risk.