Performance & Volatility
Last valuation date : 14-05-2019
Risk / Return from06-01-1999
All information for an index prior to its Inception Date is back-tested, based on the methodology that was in effect on the Inception Date. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an Index methodology and selection of index constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the actual operation of an index. Actual returns may differ from, and be lower than, back-tested returns.
The key elements of the index methodology are available upon demand.
The NXS High Dividend US Equity index is a dynamic strategy index with exposure to a basket of US liquid and marketable stocksoffering high dividends.
The aim of the index is to gain access to a basket of US stocks with high dividends, with the aim to outperform the risk-adjusted returns on the S&P 500® Total Return index.
To be included in the NXS High Dividend US Equity index, a stock must:
– be part of the S&P 500® index ;
– have a market capitalisation of over USD 1.5bn ;
– show average liquidity over the preceding 6 months of over USD 15m a day in volume.
Of the equities that meet these criteria and for each of the 10 sectors of the ICB classification, 30 are chosen that offer the lowest volatility over the past year.
If for a given sector, the number of stocks meeting the criteria defined above is lower than 30, all the stocks of the sector meeting these criteria are included.
From among the remaining stocks are chosen the 50 stocks with the highest dividend over the past year, in compliance with the following sector diversification: each of the 10 sectors is represented by at least one stock and by no more than 7 stocks.
With a selection of companies paying high dividends, the aim is to offer a portfolio combining performance and low volatility.