S-Network Global Indexes has launched the Rapid Ratings Blue Chip Equity Indexes: Rapid Ratings US Large Cap Blue Chip Index and Rapid Ratings International (ex-US) Blue Chip Index.
The indices cover the US and international large cap sectors and are based on the Financial Health Rating (FHR), Rapid Ratings’ proprietary and innovative measure of risk. The FHR measures a company’s absolute and relative ability to compete with its global industry peers.
The indices provide diversified equity exposure to companies exhibiting superior financial health based on a weighted average of 62 quantitative efficiency ratios derived from company financials. Rapid Ratings covers more than 9,000 public companies globally, and ratings are generally updated within 24 hours of the companies’ quarterly reporting dates. Rapid Ratings compares an individual company at the present moment to a vast underlying dataset of hundreds of thousands of global companies spanning more than 30 years.
Live calculation of the index began on 12 January 2012 and historic data sets are available from 31 December 1999.
James Gellert, chairman and chief executive of Rapid Ratings, says: “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.”
The indexes are rules-based and fully transparent, employing a methodology that maintains sector allocations comparable to the major benchmarks. Information about the indexes, including rules, historic return data, index fact sheets and presentations can be found.
Joseph LaCorte, president of S-Network Global Indexes, says: “These indexes give investors an effective means of benchmarking the performance of a subset of companies characterised by their financial soundness.” The indexes offer high correlations to the major benchmarks and consistently superior performance in 11 of the past 12 years.
Rapid Ratings Blue Chip Equity Indexes are published by S-Network Global Indexes.