The BSE SmallCap 500 Universe Factor Index is reconstituted quarterly, has a base value of 1,000, and the first valuation date is September 19, 2005, with additional screening of 90% stock trading frequency.
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The indices launched today include – BSE Smallcap 500, which is a composite of BSE 250 Smallcap Index and BSE 250 Microcap Index, BSE Smallcap 500 Quality 50, which measures the performance of BSE 50 top quality companies based on the BSE Smallcap 50 quality score.
BSE Small Cap 500 Momentum 50 tracks the performance of the 50 companies in the BSE Small Cap 500 Index based on momentum scores with the strongest consistency in relative performance. The BSE Smallcap 500 Low Volatility 50 monitors the 50 least volatile companies in the index, while the BSE Smallcap 500 Enhanced Value 50 measures the performance of the 50 companies with the most attractive valuations, based on value scores.
“The launch of the BSE Small Cap 500 Universe Factor Indices marks an important expansion in our factor-based index offerings. This index family provides transparent and rules-based benchmarks designed to capture key equity factors in the Indian small-cap segment, including a specific portfolio factor and a low-quality factor, including a quality factor,” said Valatigam. Ashutosh Singh, MD & CEO, BSE Index Services, highlighted the importance of these indices.
These indices support product innovation and offer asset managers and institutional investors useful tools to access the various small-cap factor exposures in the broader market.
These new indices can be used to drive passive strategies such as ETFs and index funds. It can also be used for benchmarking PMS strategies, MF schemes and fund portfolios. Investors can now access a wider range of market opportunities, further enriching their investment strategies with this latest addition to BSE’s suite of indices.
