ABOUT Dave Gedeon

I am the Vice President of Nasdaq Global Information Services, which encompasses Nasdaq Global Indexes. I am responsible for index product management, development and research of Nasdaq Global Indexes. During my time here, Nasdaq has launched thousands of indexes resulting in both innovative benchmarks and index-tracking products. Notable launches include the Nasdaq US All Market Family, the Nasdaq Multi-Asset Family, the Nasdaq Commodity Index Family. I also worked on the expansion of the Nasdaq Dividend AchieversTM brand. I have a B.A. in economics from Denison University.

Posts by Dave Gedeon

May 2015 Monthly Index Performance Report By: Dave Gedeon
on 6/1/2015



Market performance in the month of May was driven by concerns about the economy’s health and the uncertainty of when the Fed will start to raise interest rates. In the background, news about the debt crisis in Greece also led media headlines.

The Nasdaq Biotechnology Index was May’s top performer with a 9.2% gain. The Nasdaq OMX Solar Index was the laggard for the month, shedding 8.4%. With its impressive gains, biotechnology continues to be a market leader in 2015. Despite a weak start to the month, the NASDAQ Composite rallied strongly to end the month higher by 2.6%, outperforming the 1.05% gain from the S&P 500. The Nasdaq Composite also crossed back above the key 5,000 level. Other notable strong performers include the Nasdaq PHLX Semiconductor Index (+8.6%), the Nasdaq Q-50 (+5.2%) and the Nasdaq OMX Wind Index (+7.5%).

The Nasdaq Biotechnology Index is May's top performer at 9.2% and the Nasdaq Solar Index is the worst performer of May at -8.4%. Get a quick overview of Nasdaq Index performance data for our top 50 most watched indexes here.

H20 Investing: Combining the Best Elements Within Smart Beta By: Dave Gedeon
on 5/12/2015

Smart Beta investment strategies have seen a 24% compounded annual growth rate since 2010*. With investors clamoring for better performance, lower risk investments, ways to mitigate volatility, all while demanding reduced fees, how do you determine which strategies are right for your investments? The answer lies in selecting rules-based, transparent approaches that combine different smart beta factors.

In our latest web seminar, hosted by ETF.com, Dave Gedeon of Nasdaq and Jay Gregnani of Dorsey, Wright & Associates, which was acquired by Nasdaq earlier this year, join together to discuss “H20 Investing: Combining the Best Elements Within Smart Beta.” Both hydrogen and oxygen are famously combustible in many scenarios, but when combined appropriately, they create the most important compound for sustaining life as we know it. Gregnani will explain how combining some of the powerful return factors now available within the ETF space become even more useful when combined with the right complementary elements in the ETF world.

Click here to watch and/or download the webinar.
 

Index In Focus: Dorsey Wright Focus Five Index By: Dave Gedeon
on 5/12/2015

The Dorsey Wright Focus Five Index launched in February 2014 and over the past year has outperformed the US markets by 13% on a price return basis. The Focus Five methodology is rooted in selecting the five highest ranked sector ETFs from First Trust’s ETF line-up based on the Dorsey Wright proprietary relative strength model. Relative strength is a momentum technique that relies on unbiased, unemotional and objective data, rather than biased forecasting and subjective research.


At its core, Focus Five is the embodiment of a sector rotation strategy and offers a broad market experience but enhances returns by only tracking the best performing sectors on a relative strength basis. Currently the sector rotation strategy is in Biotechnology, Internet, Consumer Staples, Health Care, and Consumer Discretion. It is clear that the market leader sectors are those focused on the individual – between consumer sectors and health care – and the individual has been a driving force on the market’s returns.

Focus Five has also generated this outperformance without generating significantly higher volatility than the broad market. The information ratio is a high 0.75 and the risk-adjusted return is significantly higher than the broad market.



March 2014 marked the one-year anniversary for the associated ETF, the First Trust Dorsey Wright Focus 5 ETF (FV).


Which five ETFs do you think should come into focus next?


*Source: Nasdaq as of May 8, 2015


The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. The performance numbers above reflect the performance of an index. Indexes are not available for direct investment and do not contain fees. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. Actual results may differ materially from those expressed or implied. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

March 2015 Monthly Index Performance Report By: Dave Gedeon
on 4/2/2015



The OMX Index Family, the benchmarks of the Nordic markets, have experienced a strong start to 2015 on the back of a collapsing Krona. The SEK has weakened by over 10% year to date as the European continent, not just the Euro, have been on the wrong side of the US Dollar. Though that currency swing has richly rewarded investors in the local European equity markets with strong outperformance over the US market.

The Nasdaq Composite had a historic month in March as it crossed the 5000 threshold for the second time ever and first time since March 2000. The difference between 5,000 in March 2000 versus 5,000 in March 2015 has been widely dissected by the financial press but it bears pointing out again the massive shift the stocks listed on Nasdaq have undertaken in their fundamental strength while also driving significant innovation to the world through technology, health care and consumer goods.

The Nasdaq Q-50, the index comprised of the 50 companies that are next eligible to be members of the Nasdaq-100, has had strong returns of late. Q-50 has had one of the strongest Q1s which was largely driven by its high exposures to biotech which drove over 45% of the gain of the quarter. Biotech’s impressive gains continued into 2015 fueled by mid-cap names such as Biomarin Pharma and United Therapeutics.

The Nasdaq Solar Index is March's top performer at 9.5% and the PHLX Gold/Silver Sector Index is the worst performer of March at -14.9%. Get a quick overview of Nasdaq Index performance data for our top 50 most watched indexes here.

February 2015 Monthly Performance Report By: Dave Gedeon
on 3/10/2015


The Nasdaq Composite ended February poised to break through 5000 as an incredibly strong February fueled growth in U.S. stocks as earnings came in strong and growth prospects for macro environment brightened. Interestingly, energy experienced a bounce up in February though whether those gains are sustainable or just the dead cat bouncing remains to be seen.

The Nasdaq Solar Index is February's top performer at 17.6% and the Nasdaq Commodity Gold ER Index is the worst performer of February at -5.2%. Get a quick overview of Nasdaq Index performance data for our top 50 most watched indexes here.

Nasdaq Research Update: Technology Sector Continues to Dominate Dividends By: Dave Gedeon
on 2/13/2015

As Q4 earnings wrap up, it is clear that the technology sector continues to power greater returns to shareholders with strong dividends and buybacks fueled by large cash balances, strong earnings, and topline revenue growth.

The Nasdaq Technology Dividend Index is the leading benchmark of dividend-paying technology companies. The index currently tracks 95 securities listed in the U.S. that are involved in technology or telecom.

On a weighted basis, the Nasdaq Technology Dividend Index’s current components have been dramatically increasing the total dollars paid out to shareholders via dividends from a level of $1.5 billion in 2011 to $2.1 billion in 2014 representing a 41% increase. While Apple, the world’s largest company by market capitalization, has become a noted dividend payer it is worth highlighting that excluding Apple from the Technology Dividend Index still results in a significant 36.7% increase during the same period.

Technology has very quickly become the preferred sector for dividends no matter if investors favor quality, yield, or growth. The Nasdaq Technology Dividend Index complements broad based dividend strategies that tend to be underweight in technology.

Currently, the top ten components represent 56% of the index and include highly recognizable names including Apple, IBM, Cisco and others. The top ten are displayed below along with their current weight, most recent dividend payment, and indicated yield.

Data as of February 11, 2015
Source: Nasdaq Global Indexes, Bloomberg, FactSet

The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither The NASDAQ OMX Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
 

NASDAQ OMX Launches Two New Indexes in the NASDAQ IBIS Index Family By: Dave Gedeon
on 2/19/2014

NASDAQ OMX has introduced two new indexes on GIDS 2.0 - the NASDAQ IBIS Focused Growth Index (NQIBIS); and the NASDAQ IBIS Focused Growth Total Return Index (NQIBIST).

“These new indexes offer the unique viewpoint of accessing an absolute return strategy, while maintaining a rules-based and rigorous selection process,” said Dave Gedeon, Managing Director of NASDAQ OMX Global Indexes. “Partnering with IBIS Capital allows the market to benefit from both the tactical allocation models and rules-based index tracking.”

The NASDAQ IBIS Focused Growth Index will invest in exchange-traded funds covering Large Cap U.S. equities, Small Cap U.S. Equities, Developed Market Equities, and Emerging Market Equities using IBIS Capital’s Quantitative Tactical Global Rotation Strategy.

The selection of assets is determined through a proprietary technology for Relative Strength. During periods of weakness across global equity markets, the index will shift into either short-term, medium-term, or long-term U.S. government bonds, depending upon prevailing interest rates.

“We are excited to partner with Nasdaq OMX Global Indexes, a pioneer in the space of innovative indexes,” said Neal McNeil III, CEO of Ibis Capital. “These new indexes will allow investors to think about benchmarking their portfolios globally and dynamically, with a focus on downside protection and upside participation of the equity markets.”

For licensing inquiries about the NASDAQ IBIS Focused Growth Index, please call NASDAQ OMX Licensing Global Data Sales at (301) 978 8050.

 

Covered Call Strategy ETFs By: Dave Gedeon
on 1/22/2014

The CBOE NASDAQ-100 BuyWrite Index (BXN) is the basis of the Recon Capital NASDAQ-100 Covered Call ETF (QYLD), which launched in December 2013. This exchange-traded fund (ETF) is the latest addition to a small, recent wave of covered-call ETFs and NASDAQ’s third in this category.

The CBOE NASDAQ-100 BuyWrite Index (BXN) measures the total return of a portfolio consisting of common stocks of the 100 companies included in the NASDAQ-100 Index and call options systematically written on those securities through a “buy-write” (or covered call) strategy. A “buy-write” strategy is an investment strategy in which the Fund buys a specific basket of stocks (such as the NASDAQ-100® Index) and sells covered call options that correspond to that basket of stocks.

“This type of product is growing more and more in popularity as investors seek ways to get an extra boost of income during this uncertain time in the market,” said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes.
“Covered calls are proliferating as they offer lower market volatility, produce income, are less expensive, and provide more liquidity than options alone. They also provide market participation in flat to slightly up/down markets making them a superior investment strategy.”

In 2013, NASDAQ launched the Credit Suisse NASDAQ Silver FLOWS 106 Index ER (QSLV) and the Credit Suisse NASDAQ Gold FLOWS103 Price Index (QGLDI).

“The buywrite strategy is the quintessential low-vol strategy where you’re buying the index and riding a call against that,” said Robert Hughes, Vice President, NASDAQ OMX Global Indexes. “Advisors today are looking at traditional low volatility, income-producing strategies, options strategies, such as covered calls/buywrites. Now NASDAQ is providing this all in one ETF. It’s much easier for FAs to sell that to a client than to have to explain how to buy/sell options, plus there’s much more liquidity in this type of strategy.”
 

 

Markets Pause to Assess Economy, Valuations, Holiday Sales By: Dave Gedeon
on 12/4/2013

U.S. market indexes were marginally lower after hitting multi-year and, in some cases, record highs. Bulls are looking for a catalyst for the next leg up, while bears fret the speed of the recent moves higher and potential Fed “tapering.”

“With the holiday shortened trading week and end-of-year portfolio considerations, some traders took profits while assessing current market levels,” said Dave Gedeon, Managing Director of NASDAQ OMX Global Information Services. “How investors are viewing valuations across the global markets will be an interesting catalyst for the start of 2014 as the spread between US and emerging markets has increased significantly in 2013.”

NASDAQ OMX Global Indexes Provides Custom Indexing for Newfound Financial Innovators By: Dave Gedeon
on 10/23/2013

NASDAQ OMX Global Indexes has partnered with Newfound Research LLC to create several rules-based, quantitatively enabled investment strategies. The indexes launched on October 23rd, 2013. Together, the two companies will create a suite of outcome-oriented indexes and work jointly to promote licensing opportunities. The initial indexes will include a Risk Managed Income strategy, a Global Defensive Equity strategy, a Target Excess Yield strategy and a U.S. Equity Dynamic Long/Short strategy.

NASDAQ OMX and Newfound will be able to license and implement through separately managed accounts and, in some cases, through exchange-traded funds (ETFs). Together, we will promote the product and provide educational information about how indexing works and how these investment strategies might fit into a client's portfolio.

"NASDAQ OMX continues to focus on innovation and partnering with exceptional firms like Newfound, one of the most inventive and sought after organizations developing rules-based, outcome-oriented investment strategies and specializing in tactical asset and risk management,” said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. “This relationship brings our respective brands and expertise together to develop a unique product family.”

“Newfound seeks strategic partners like NASDAQ OMX,” said Corey Hoffstein, Newfound’s Chief Investment Officer. “By combining our unique and complementary strengths, including Newfound’s quantitative models and NASDAQ OMX’s global brand, this partnership allows us to provide both retail and institutional investors with a full suite of structured investment strategy solutions.”

Tom Rosedale, Newfound’s CEO, said, "We are excited to partner with a leading, full-service index provider like NASDAQ OMX. We believe that NASDAQ OMX’s index construction and technology expertise and powerful brand can make our quantitatively enabled, rules-based investment strategies available to investors throughout the world.”

Learn more about NASDAQ Custom Indexing capabilities or contact Rob Hughes, Vice President, NASDAQ OMX Global Indexes +1 212 401 8987.

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