BSE Index Services launches market capitalization and factor indices based on the BSE SmallCap 500

BSE Index Services, a wholly owned subsidiary of BSE, today announced the launch of the BSE SmallCap 500 Index and four new factor indices based on the BSE SmallCap 500 Index universe. The BSE SmallCap 500 Universe Factor Indices are reconstituted quarterly, have a base value of 1,000 and the first value date is September 19, 2005, along with the additional screening of a 90% stock trading frequency.

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The indices launched today include: BSE Smallcap 500, a combination of the constituents of the BSE 250 Smallcap Index and the BSE 250 Microcap Index, BSE Smallcap 500 Quality 50, which measures the performance of the 50 highest quality companies in the BSE Smallcap 500 Index, based on their quality scores.

The BSE Smallcap 500 Momentum 50 tracks the performance of the 50 companies in the BSE Smallcap 500 Index with the strongest persistence in relative performance, based on momentum scores. 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 SmallCap 500 Universe Factor Indices marks a significant expansion of our portfolio of factor-based indices. This index family offers transparent and rules-based benchmarks designed to capture the key equity factors in the Indian Small-Cap segment by integrating various factor strategies such as quality, value, momentum and low volatility,” said Ashutosh Singh, MD and CEO, BSE Index Services, highlighting the importance of these indices.

These indices are intended to support product innovation and provide asset managers and institutional investors with efficient tools to access differentiated small cap factor exposures within the broader equity market,” said Singh. Also Read | Samir Arora-backed Helios Flexi Cap Fund Adds Tata Motors, Exits REC and Two Others

These new indices can be used to implement 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 broader spectrum of market opportunities, further enriching their investment strategies with this latest addition to BSE’s suite of indices.