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NYSE Euronext, a wholly owned subsidiary of IntercontinentalExchange Group (ICE), has expanded its range of indices with the introduction of two new Dutch equity products: the AEX All-Tradable Index and the AEX All-Tradable Alternative Weighting Index.
The indices are designed to act as an underlyings to exchange-traded funds (ETFs) and other index-linked investable products, such as structured products.
The AEX All-Tradable Index includes all constituents of the large-cap AEX, mid-cap AMX and small-cap AScX indices thereby enabling investors to track the performance of the 75 largest companies listed on the Euronext Amsterdam exchange.
As a variant on this index, Euronext has launched the AEX All-Tradable Alternative Weighting Index. This index also includes all constituents of the AEX, AMX and AScX indices, however the adjusted capping allows for a more uniform distribution of the weights among the various constituents.
George Patterson, Head of Euronext Indices, said: “Investors are now able to see at a glance the price movements of a broad sample of companies traded on the Amsterdam exchange. Moreover, the indices will provide the underlying value for new products and thereby offer new investment opportunities. We welcome this addition to our wide range of indices within the AEX family.”
Constituents of the AEX All-Tradable Index are weighted based on free float adjusted market capitalization and with an individual constituent cap of 15%.
The AEX All-Tradable Alternative Weighting Index also has the same free float market capitalization weighting method; however, the capping is adjusted to 9%. Furthermore, in this index the constituents that weigh more than 4.5% are subject to a maximum weight. Combined, these constituents can total a maximum of 36% on the date of review.
Both indices are available in price, net return and gross return formats.