Standard & Poor's today launched the S&P BRIC 40 index, designed to provide exposure to 40 leading companies from emerging markets of Brazil, Russia, India and China, according to a news release.
The index is composed of large, liquid companies that trade on the Hong Kong Stock Exchange, London Stock Exchange, Nasdaq and NYSE. "The construction of the S&P BRIC 40 index accounts for both the liquidity of the underlying stocks as well as the liquidity of the overall portfolio, resulting in an index which is more efficient to invest in," said David Blitzer, S&P managing director and chairman of the index committee, in the release.
The index uses a modified market-capitalization weighting scheme, the release stated. Constituent companies are members of the S&P/IFCI index series and meet minimum market capitalization and liquidity requirements.
Spokesman David Guarino was not available for comment at press time.