NEW YORK, Aug. 23 /-/ -- Standard & Poor's Index Services, the world's leading index provider, announced today the launch of two new indices that provide investors with exposure to the top stock picks of Standard & Poor's Equity Research analysts in Europe and the United States. The S&P U.S. STARS Index and the S&P Europe STARS Index are designed to measure the performance of stocks within the S&P Composite 1500 (U.S. STARS) and S&P Europe 350 (Europe STARS) currently ranked 5-STARS or 4-STARS out of 5 by Standard & Poor's Equity Research Services, the world's largest producer of independent equity research.
U.S. and European equities ranked 5-STARS/"Strong Buy" or 4-STARS/"Buy" by Standard & Poor's Equity Research Services analysts are expected to outperform the S&P 500 and S&P Europe 350, respectively. The S&P U.S. STARS Index is designed to reflect the performance of these recommendations within the S&P Composite 1500 universe, while the S&P Europe STARS Index is designed to reflect the performance of these recommendations within the S&P Europe 350 universe.
Both indices are comprised primarily of 5-STARS stocks, but may also include 4-STARS stocks when certain conditions warrant. The S&P U.S. STARS Index and the S&P Europe STARS Index offer a passive means of tracking active security selection value generated by Standard & Poor's Equity Research Services analysts. Both indices are equal-weighted, with constituents reviewed and re-weighted every month.
STARS has existed since 1987 for U.S. equities, and since 2002 for European equities. Standard & Poor's Equity Research Services has ranked a universe of common stocks based on a given stock's potential for future performance. Under proprietary STARS (STock Appreciation Ranking System) methodology, S&P equity analysts rank stocks according to their individual forecast of a stock's future total return potential versus the expected total return of a relevant benchmark based on a 12-month time horizon. STARS was designed to meet the needs of investors looking to put their investment decisions in perspective. The overarching investment philosophy driving the methodology is "Growth at a Reasonable Price." Rankings range from 5- STARS/"Strong Buy" to 1-STARS/"Strong Sell."
For more information about S&P STARS or Standard & Poor's Equity Research Services, please visit http://www.equityresearch.standardandpoors.com.
For more information about the S&P U.S. STARS Index and the S&P Europe STARS Index, please visit http://www.standardandpoors.com/indices.
About Standard & Poor's Index Services
Standard & Poor's Index Services, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Its family of indices includes the S&P 500, an index with $1.32 trillion invested and $4.91 trillion benchmarked, and the S&P Global 1200, a composite index comprised of seven regional and country headline indices. For more information, please visit http://www.standardandpoors.com/indices.
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 21 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com.
About Standard & Poor's Equity Research Services
As the world's largest producer of independent equity research, Standard & Poor's licenses its research to over 1,000 institutions for their investors and advisors, including 19 of the top 20 securities firms, 13 of the top 20 banks, and 11 of the top 20 life insurance companies. Standard & Poor's team of 120 experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of approximately 2,000 equities across more than 120 industries worldwide. Follow Standard & Poor's equity analysts' U.S. market commentary each day at http://www.equityresearch.standardandpoors.com/.
The equity research reports and recommendations provided by Standard & Poor's Equity Research Services are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research Services has no access to non-public information received by other units of Standard & Poor's. Standard & Poor's does not trade for its own account. The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may also be found at http://www.standardandpoors.com or by clicking here.
Standard & Poor's does not sponsor, endorse, sell or promote any S&P index-based investment product.