Standard&Poor’s has announced the launch of the S&PFactor Indices which seek to measure the risk premium inherent between asset classes and financial markets, creating a transparent means for investors to track the spread between a long and short sub-index.

Each index in the S&PFactor Index Series is comprised of an equal-weighted long and short sub-index calculated to reflect the corresponding spread. The Long Sub-Index is comprised of long front futures contracts; the Short-Sub-Index is comprised of short front futures contracts. The objective of each index in the series is to provide investors with exposure to the price difference between Sub-Indices, and in turn, the underlying futures contracts. The Indices are calculated on a real-time basis.

“The S&PFactor Index Series was built to provide investors with the ability to benchmark, or gain exposure to, a broad range of risk premium in the financial markets,” notes Steve Goldin, Vice President of Strategy Indices at S&PIndices.

The following factors are represented in the S&PFactor Index Series:

• Equity Risk Premium: Measures the spread of theU.S.stocks over the returns of long-term Government Bonds.
  
• Non-U.S. Dollar Equity: Measures the spread of the return ofU.S.stocks over the return of the U.S. Dollar Index.
  
• Crude Oil - Equity Spread: Measures the spread of the return of Crude Oil over the return ofU.S.stocks.
  
• Gold - EquitySpread: Measures the spread of the return of gold over the return ofU.S.stocks.