NEW YORK, Jan. 15, 2015 /PRNewswire/ -- S&P Dow Jones Indices, one of the world's leading providers of financial market indices, announced today its intention to launch a new factor-based index, the S&P 500® Capex Efficiency Index. The Index has been licensed to Elkhorn Investments.
The S&P 500 Capex Efficiency Index will measure the constituents of S&P 500 that have exhibited strong capital discipline in the form of efficient capital expenditures. Capital expenditures efficiency, which is captured from a company's cash flow statements, is measured through capital expenses that have resulted in increased sales. Capital expenditures are one of the ways in which management can provide return of capital to investors.
"Recently, there has been an increasing focus on immediate return to shareholders via dividends and buybacks," says Vinit Srivastava, Senior Director at S&P Dow Jones Indices. "According to our data, over the year ended September 2014, buyback and dividend expenditures of companies in the S&P 500 increased to new record high of $892.7 billion, with buybacks representing 62.0% of the total. The S&P 500 Capex Efficiency Index will seek to measure an important and growing company dynamic for investors who are looking to companies that have efficiently channeled capital back into their business in the form of capital expenditures."
"Although dividend and buyback indexes have been in high demand, there has been a lack of indexes covering companies with a focus on longer-term growth through capital expenditures. Elkhorn is excited to license this innovative new index from S&P Dow Jones Indices," says Ben Fulton, CEO of Elkhorn Investments.
The complete methodology for the S&P 500 Capex Efficiency Index will be posted to www.spdji.com upon Index launch.
About S&P Dow Jones Indices
S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world's largest, global resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transparent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 1,000,000 indices covering a wide range of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the markets. To learn more about our company, please visit www.spdji.com.
S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("S&P"), a part of McGraw Hill Financial. Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). These trademarks have been licensed to S&P Dow Jones Indices LLC. It is not possible to invest directly in an index. S&P Dow Jones Indices LLC, Dow Jones, S&P and their respective affiliates (collectively "S&P Dow Jones Indices") do not sponsor, endorse, sell, or promote any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. This document does not constitute an offer of services in jurisdictions where S&P Dow Jones Indices does not have the necessary licenses. S&P Dow Jones Indices receives compensation in connection with licensing its indices to third parties.
SOURCE S&P Dow Jones Indices