FTSE and the Johannesburg Securities Exchange (JSE) have launched a tradable index aimed at providing an underlying for structured products, certificates and other financial products.

The FTSE/JSE Dividend Index takes companies from the FTSE/JSE Top 40 Index and FTSE/JSE Mid Cap Index, excluding real estate companies, and ranks them by their one-year forecast dividend yield.

The top 30 companies make up the FTSE/JSE Dividend Index and the constituents’ weightings in the index are determined by their dividend yield. The index is the first dividend weighted index covering South African stocks. It aims to cater for both South African domestic and international investors.

Imogen Dillon Hatcher, md, FTSE Europe, said “FTSE is delighted to have partnered the JSE to create an innovative new index for international investors. We constantly strive to provide access to the highest performing value stocks, and this new dividend index means investors worldwide have a new tool which is also specifically designed to support structured products and ETFs.”