Qontigo expands factor-based index suite to include sustainable indices
Qontigo, an investment intelligence leader and provider of best-of-breed analytics and world-class indices, has expanded the STOXX Factor Index suite to include a family of ESG-screened indices.
The STOXX ESG-X Factor Indices provide sustainability-driven investors with ESG-screened indices that can target similar levels of factor exposures as the STOXX Factor Indices, while controlling for unintended exposures. These factor exposures are derived from the institutionally tested analytics of Axioma Factor Risk Models.
With the addition of the STOXX ESG-X Factor Indices, the STOXX index portfolio now includes ESG-screened versions of more than 50 benchmarks that meet the responsible-investing criteria of leading asset owners. The suite offers ESG-X versions of global, regional and emerging markets benchmarks, including ESG-X versions of the EURO STOXX 50 and the STOXX Europe 600. The STOXX ESG-X screening methodology relies on Sustainalytics' expertise as the leading independent global provider of ESG data. Companies involved in controversial products including controversial weapons, tobacco production, and thermal coal, as well as companies in breach of the Global Standards Screening principles, are excluded from the benchmark universe.
"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," says Holger Wohlenberg, Chief Business Officer of Qontigo.
Complementary to the STOXX Factor Indices, the STOXX ESG-X Factor Indices are comprised of five single factors – Value, Momentum, Size, Low Risk, Quality – and a Multi-Factor index that combines all five signals. The indices are available for universes covering Europe, Asia-Pacific, Japan, US and Globally.