Barclays’ Shiller Equity Indexes Extended To EU

January 22, 2014

Barclays announced in October that its Shiller Barclays CAPE Index family, which launched in the U.S. in September 2012, would now extend its reach to Europe with three new indexes.

The three new indexes mirror the U.S. range, and will include the Shiller Barclays CAPE Europe Sector Index; the Shiller Barclays CAPE Europe Sector Tilted Index; and the Shiller Barclays CAPE Europe Sector Market Hedged Index.

All three of the new indexes have a value tilt toward Europe, using cyclically adjusted price-to-earnings ratios and price momentum to pick four sectors out of a 10-sector European universe, while the initial index family, although available to European investors, focused on U.S. sectors.

Robert Shiller, a Yale professor and 2013 winner of the Nobel Memorial Prize for Economic Sciences, helped develop this new index family after seeing the performance of the U.S.-sector focused indexes, saying that this new family aims to allow investors to systematically invest in undervalued European sectors.

 

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