After Mario Draghi’s comments regarding the potential end to the ECB’s unprecedented monetary stimulus, which has taken the form of negative interest rates and 60 billion euros a month of quantitative easing, global financial markets were in slight decline in June. On the contrary, the banks sector overall saw a tremendous performance increase in the past month after Fed’s annual stress test which all banks have passed for the first time after it was implemented in the wake of the financial crisis.
Systematic risk is a factor investors are constantly concerned about. The iSTOXX Europe Factor Indices aim at offering investors a unique and very innovative way to target six well-documented sources of systematic risk in the attempt to harvest premia: value, carry, momentum, size, low risk as well as quality. The market neutral indices are constructed by beta hedging the factor index with one of Europe’s most liquid benchmark index, the STOXX Europe 600 in order to capture returns associated with targeted factors without the need to “drag along” a broad market exposure. Learn more about the iSTOXX Europe Factor indices in a research paperon our website or in our Monthly Index News alongside last month’s sector and country performance analysis.
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