Solactive launches Nordic 150 Index

Apr 6th, 2017 | By | Category: ETF and Index News

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Germany-based index provider Solactive AG has unveiled the Solactive Nordic 150 Index, tracking the 150 most liquid shares listed in the Nordic region covering Denmark, Finland, Norway and Sweden.

Solactive launches Nordic 150 Index

The Solactive Nordic 150 Index tracks the largest, most liquid stocks in Sweden (55.7%), Denmark (22.2%), Finland (13.4%) and Norway (8.7%). (Data as of 31 March 2017)

The index may serve as the benchmark for active managers to evaluate their portfolio performance against the returns of the broad Scandinavian equity market. Alternatively, it can serve as the basis on which to construct smart beta strategies or as the underlying for index-linked investment products such as ETFs.

Henning Kahre, Head of Research Solactive AG, commented: “The Solactive Nordic 150 Index provides diversified exposure to a broad basket of companies from the Nordic region. We are currently working on launching various regional indices to extend our existing benchmark offering.”

The Solactive Nordic 150 Index is composed of 150 shares selected based on 12-month liquidity and weighted according to free float market capitalization. Shares must be listed on one of the following exchanges: Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Stockholm and Oslo Børs. The majority of the index’s exposure is to the Swedish market (55.7%), followed by Denmark (22.2%), Finland (13.4%) and Norway (8.7%).

The three most represented sectors are industrials, finance and healthcare, reaching a composite weight of nearly 65% of the index. Pharmaceutical giants AstraZeneca (6.7%) and Novo Nordisk (5.8%) make up the two largest index constituents while Swedish industrial firms ABB and Atlas Copco follow with 4.5% and 3.6% weighting respectively. (Data as of 31 March 2017)

The index, which is calculated as a gross total return, price return and net total return index in Swedish krona, is readjusted semi-annually.

Using back-tested data to December 2011, the index has returned 18.5% with a per annum standard deviation of 8.4% for an impressive Sharpe ratio of 2.2. It has returned 6.2% year-to-date.

Solactive Nordic 150 Index

Source: Solactive.

The Scandinavian region is home to large companies operating in industries such as telecommunications, pharmaceuticals, biotechnology, financial services, fossil fuels, forestry, industrial engineering & transportation. According to Solactive, the Nordic countries generally present an attractive macroeconomic environment with low public debt figures, current account surpluses (with the exception of Finland), high sovereign credit ratings, and positive real GDP growth forecasts for the coming years.

In addition, all four countries figure among the twelve most competitive economies in the world, according to the 2016-2017 Global Competitiveness Report by the World Economic Forum.

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