S&P launches low-volatility index for structured products

Underlyings' liquidity aids issuers in pricing and hedging

market volatility
Index aims to offer a simpler alternative to volatility controls

A new index launched by S&P Dow Jones Indices (S&P) and licensed by Deutsche Bank in mid-November aims to balance low volatility, yield and liquidity to appeal to issuers looking to price structured products off it.

The S&P 500 Low Volatility Enhanced Index, launched on November 18, is comprised of 50 stocks from the S&P 500 with the lowest beta out of those equities that have a dividend yield equal or exceeding the weighted yield of the S&P 500.

S&P and Deutsche Bank say the index will be well

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