In December, Europe-based index provider Stoxx Limited launched a new index offering exposure to emerging markets through European-based companies.
The Stoxx Europe 600 EM Exposed Index will enable investors to access these markets through more liquid securities, according to a note from Stoxx. The index represents those companies within the Stoxx Europe 600 Index that derive a substantial part of their revenues from emerging markets countries. All companies’ geographic revenue splits are collected from their annual reports and the publicly available United Nations Commodity Trade Statistics Database, which contains manufactured goods exports data on each country. When data on a specific company are unavailable or not reported, ratios are approximated.
To only include companies in the Stoxx Europe 600 EM Exposed Index that have a significant part of their revenues from nondeveloped markets, a final exposure threshold of 33 percent is set.