S-Network Global Indexes unveils “Rapid Ratings” blue-chip equity indices

Jan 2nd, 2013 | By | Category: ETF and Index News

S-Network Global Indexes has partnered with Rapid Ratings, a US financial rating and analytics company, to launch a family of benchmarks designed to provide diversified equity exposure to companies exhibiting superior financial strength.

S-Network Global Indexes unveils “Rapid Ratings” blue-chip equity indices

James Gellert, Chairman and CEO of Rapid Ratings.

There are currently two indices in the index family: the Rapid Ratings US Large Cap Blue Chip Index and the Rapid Ratings International (ex-US) Blue Chip Index.

The initial indices cover US and international large-cap sectors (further market segments and regions are to follow) with index constituents weighted according to their Financial Health Rating (FHR).

The FHR is Rapid Ratings’ proprietary measure of a company’s absolute and relative ability to compete with its global industry peers. The measure encompasses some 62 quantitative efficiency ratios derived from company financials calibrated with more than 30 years of data.

Rapid Ratings covers more than 9,000 public companies globally, and ratings are generally updated within 24 hours of the companies’ quarterly reporting dates.

James Gellert, Chairman and CEO of Rapid Ratings, said: “Rapid Ratings provides timely assessments of the financial health of companies using industry-specific modelling. Historical tests have demonstrated that Rapid Ratings often leads share price and credit spread indicators. These are key considerations for investors of all types, and are especially pertinent in uncertain economic times.”

Joseph LaCorte, President of S-Network Global Indexes, said: “These indexes give investors an effective means of benchmarking the performance of a subset of companies characterized by their financial soundness.”

The indices are rules-based and fully transparent, employing a methodology that maintains sector allocations comparable to the major benchmarks.

The indices offer high correlations to the major benchmarks and have delivered consistently superior performance as the charts below attest.

Rapid Ratings US Large Cap Blue Chip Index:

Rapid Ratings US Blue Chip Index

 

 

 

 

 

 

 

 

 

Rapid Ratings International (ex-US) Blue Chip Index:

Rapid Ratings International (ex-US) Blue Chip Index

 

 

 

 

 

 

 

 

 

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