IHS Markit and KRX launch Korean smart beta indices

Nov 1st, 2017 | By | Category: Equities

IHS Markit and Korea Exchange (KRX) have launched two new smart beta indices that track South Korean equities. The indices will allow ETFs and other market participants to track publicly traded Korean Companies with the strongest dividend prospects based on IHS Markit research.

IHS Markit and KRX launch Korean smart beta indices

The indices will give market participants exposure to Korea-listed stocks with strong dividend forecasts.

Both the KRX-IHS Markit KOSPI 200 Dividend Forecast Yield Top 30 and the KRX-IHS Markit KOSPI 200 Dividend Forecast Growth Top 30 are derived from the flagship KRX index, the KOSPI 200. The dividend indices are constructed using the 30 stocks with the highest forecast dividend yield and growth, respectively.

Sang Hwan An, president and CEO of the Management Strategy Division at KRX, commented: “Integrating IHS Markit dividend forecasting into the stock selection process is a natural progression for smart beta indices. By measuring the potential for future performance, these new indices provide investors with an opportunity to upsize dividends.”

Pierre Khemdoudi, managing director of securities finance at IHS Markit, said: “The recent growth in Korean dividends inspired us to collaborate with KRX on an innovative approach for index-based investing that can offer a strong value for ETFs with Koran exposure. As the IHS Markit dividend forecasting team continues to measure dividend growth trends in other global markets, we plan to launch additional indices based on forward-looking data.”

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