S&P DJI Launches EM Demand Index

February 24, 2014

In late January, S&P Dow Jones Indices rolled out the S&P Emerging Markets Domestic Demand Index; the benchmark is designed to track emerging market companies operating in sectors that are driven by domestic demand.

Constituents must be domiciled and incorporated in one of 19 emerging market countries, in addition to being listed on the primary stock exchange of their home country, the press release said. Ultimately, 50 companies are chosen from the markets of Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Thailand and Turkey.

All of the companies must also fall within the consumer staples, consumer discretionary, telecommunication services, healthcare or utilities sectors of the GICS, the press release said.

Component companies must meet additional size and liquidity requirements. The index will be reviewed and reconstituted in September on an annual basis.


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