SPI Multi Premia

SPI Multi Premia

The Multi-Factor Index of Switzerland

Intelligence Through Diversification

As investors increasingly look to intelligent beta solutions as a supplement to standard investment models, SPI Multi Premia provides an ideal and innovative way of diversifying exposure to the SPI. By combining seven SPI Single Premia Indices – each one including the highest value securities as measured by a specific factor – the SPI Multi Premia Index ensures diversification over several sources of return. This unique multi-factor approach is increasingly popular with institutional investors, as it allows for a wide and diversified absorption of factor premiums.

Seven Statistically Significant Sources of Return

The unique multi-factor investing approach breaks down the return of a share into its individual components and then invests specifically in those long-term drivers of performance. The 60 largest and most liquid SPI stocks are analyzed according to seven factor premiums: Value (cheap stocks), Size (small stocks), Momentum (systematic trends), Residual Momentum (stock-specific trends), Reversal (trend reversal), Low Risk (safe stocks) and Quality (profitable stocks). The 30 SPI stocks with the best values for each factor then form the individual SPI Single Premia Indices. The multi-factor index, SPI Multi Premia Index, combines all seven indices, allowing investors to absorb all seven factor premiums, resulting in a better risk-return ratio compared to the underlying investment universe of the SPI.

Secure Your Index Data Package

The SPI Multi Premia offers an alternative way of diversifying exposure to the SPI.
Learn more about the index data package you will need for the SPI Multi Premia.

About the SPI Multi Premia

SPI Multi Premia is an intelligent smart beta solution with a unique multi-factor approach allowing investors to diversify their exposure to the SPI over seven different sources of return. This results in a better risk-return ratio compared to the underlying universe, making it ideal for use as an underlying and for benchmarking. Learn more about SPI Multi Premia in this section.

Available Single Premia Indices

The following Single Premia Indices are available:

  • SPI Value Premium (Cheap Stocks)
  • SPI Size Premium (Small Stocks)          
  • SPI Momentum Premium (Systematic Trends)    
  • SPI Residual Momentum Premium (Stock-Specific Trends)         
  • SPI Reversal Premium (Trend Reversal)
  • SPI Low Risk Premium (Safe Stocks)    
  • SPI Quality Premium (Profitable Stocks)

Each one of the seven SPI Single Premia Indices includes those 30 securities which have the best values in terms of its specific factor. The 30 selected securities are weighted so that each security contributes to the total risk of the index in equal measure.