Qontigo, part of Deutsche Börse Group, has launched the STOXX Factor Index suite, designed to deliver more clarity to the market for factor investors by relying on the analytics of Axioma Factor Risk Models.
The firm writes that the launch was driven by market demand for accurate insight into factor exposures. The STOXX Factor Index suite uses Axioma Factor Risk Models to provide control over unintended factor exposures and to verify performance drivers. The index methodology is designed to ensures strong tradability by limiting exposures to less liquid names and controlling the number of index constituents and weights.
“The launch of the STOXX Factor Index Suite truly brings together the analytic and indexing expertise of Qontigo in a clear demonstration of the value of this powerful combination,” says Holger Wohlenberg, Chief Business Officer of Qontigo. “With commercially accepted factor definitions contributed by Axioma models, clear index construction rules, and advanced portfolio construction techniques, our factor index suite sets a new, high quality industry benchmark in this growing market segment.”
The suite provides a modern, comprehensive toolkit of indices for benchmarking and investor, the firm says. It is comprised of five single factors – Value, Momentum, Size, Low Risk, Quality – and a multifactor index that delivers a diversified exposure to all fixed single factors. Regions covered include Global, US, Europe, Asia Pacific and Global ex-US.
To help investors visualise these factor exposures and target benchmark tracking, Qontigo has launched Factor iQ, an online tool that allows users to test portfolios based on the historical results of the STOXX Factor Indices.
