Strategy Indices

Strategy indices are stock market indices designed to track the performance of a specific investment strategy rather than a market or sector. These indices follow predetermined rules and methodologies, such as dividend yield, volatility, or momentum, to select and weight stocks. Strategy indices are often used as benchmarks for passive investment strategies or by investors seeking to follow a particular approach to risk and return.

Example

A low-volatility strategy index might include stocks with stable price movements and low volatility compared to the broader market, appealing to risk-averse investors.