Asset and investment managers now have a total return index that only includes small and mid-cap companies enabling them to more accurately measure the sector and make better informed decisions
Thomson Reuters has expanded its index series by providing a total return index that includes only companies that are classified small and mid cap. The Thomson Reuters Western Eurozone Mid & Small Cap Total Return Index is market capitalization weighted and is designed to include only companies that can be genuinely considered small and mid cap, due to market cap being the primary selection screen and free-float the second criteria. This selection methodology limits the number of components to around 300 to make the index tradeable. Thomson Reuters worked closely with a group of asset managers who provided input to the definition of small and mid cap for the index to ensure a robust methodology.
The Thomson Reuters Western Eurozone Mid & Small Cap Total Return Index can be licensed by ETF providers and used as a benchmark or as a research tool by asset and investment managers seeking a convenient and transparent view into the small and mid-cap sector. The index limits the number of components to around 300 helping to further define its small and mid-cap universe and contributes to its appeal as a tradeable index. It is not just a sub-index of the Thomson Reuters Global Equity Index series, but has a different selection and weighting criteria to achieve its very specific objective. The calculation methodology and treatment of corporate actions remains the same as the Thomson Reuters Equity Indices.
“Asset and investment managers are constantly searching for pockets of investment opportunity within specific sectors of the market,” said Stephan Flagel, Head of Benchmarks and Indices at Thomson Reuters. “As a leading provider of indices, we are keen to work with investment professionals to provide differentiated content and solutions as we show in the form of the Thomson Reuters Western Eurozone Mid & Small Cap Total Return Index which provides them the exposure, transparency and insight necessary in order to deliver greater value to their clients.”
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