Standard & Poor's is introducing an index that measures liquid exposure to U.S. companies engaging in consumer lending and finance activities, including (but not limited to) mortgage real estate investment trusts, thrifts and mortgage finance companies.
The S&P Consumer Leverage Finance Index will consist of 50 of the largest companies engaged in consumer finance. To be eligible for inclusion, a company must be a member of the S&P Total Market Index or S&P ADR Index, or be a U.S. company that is classified as a REIT.
According to S&P, the index will follow a modified market capitalization weighted scheme which aims to reduce single stock concentration and give a greater weight to those companies more purely exposed to the consumer finance sector.
There are minimum market capitalization and liquidity requirements for those stocks to be included.