S&P Dow Jones Indices has launched the S&P 500 Low Volatility High Dividend index which applies a low volatility screen on a high yield basket of securities drawn from the universe of S&P 500.

The index, which has been licensed to Invesco PowerShares for the creation and launch of an exchange-traded product, is the first of its type designed to identify high yielding securities with low levels of volatility.

Invesco PowerShares is also the licensee for the closely followed S&P 500 Low Volatility index.

The S&P 500 Low Volatility High Dividend index is designed to serve as a benchmark for income seeking equity investors. The index seeks to measure 50 high yielding companies within the S&P 500, while meeting diversification, volatility, and tradability requirements.

"Income has been a primary focus for many investors in 2012 as dividend funds continue to draw an increasing amount of interest; however, volatility is still at the forefront of investor minds as market uncertainty continues to factor into their investment decisions," says Vinit Srivastava, director of strategy indices at S&P Dow Jones Indices. "The S&P 500 Low Volatility High Dividend index captures these two trending investment themes into one unique design and concept."