NASDAQ Index Blog

Our Blogs Have Moved! Updated: 1/1/2017

We’ve recently migrated Nasdaq Global Index blogs with the Nasdaq MarketInsite channel.

Click here to visit the Intel Indexes section for commentary on market performance, global trends, Smart Beta analysis and everything-else indexing.

One Way to Circumvent the China Rate Cut By: Efram Slen
on 11/23/2015

After markets closed on October 23, 2015, China cut its benchmark interest rate for the sixth time since last November. One way to combat decreasing interest rates in a portfolio is to look to dividend themed strategies. Under the Dividend Achievers brand, Nasdaq offers indexes with exposure to dividends in multiple parts of the world. For this region, Nasdaq offers the Nasdaq Asia Ex Japan Dividend Achievers Index.

Why utilize this index as your dividend benchmark for the region?

The index is built, as all Nasdaq Dividend Achievers Indexes are, around a track record of increasing dividends. After extensive research, it was determined that three years of increasing dividends was the optimal time horizon for securities in this region. In addition to the dividend achievers requirement, there is a dividend sustainability aspect to this methodology, ensuring that securities that have the dividend track record are also positioned to maintain that through positive historical cash flows. Lastly, as with all Nasdaq tradable indexes, there are minimum eligibility requirements that each security must pass including minimum liquidity and size thresholds.

Sufficient Exposure to China and the rest of Asia

As expected, the index has very high historical and current exposure to China. As you can see below, the index had a 28% weight in China as of the most recent quarter end. Other than China, the index offers broad diversification to nine other countries in Asia.

Yield

The index has had a very consistent yield and it is currently at 3.5%. Comparing the index to its benchmark (NQASPAXJP), the index has higher historical yield year-to-date over almost every period.

Conclusion

Whenever reaching for yield, one has the option to go the fixed income or equity route. If one has concerns about the fixed income route due to the rate environment or are looking to go the equity route, one solution may be a basket of stocks that have a strong dividend track record and dividend sustainability. The Nasdaq Asia Ex Japan Dividend Achievers Index offers both of those aspects in addition to a high historical allocation to China (between 25% and 40% historically) and a consistent yield around 3.5%.

Nasdaq® is a registered trademark of Nasdaq, Inc. 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, 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 or Nasdaq proprietary indexes 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. © 2015. Nasdaq, Inc. All Rights Reserved.

First Trust Switches 10 AlphaDEX ETFs to Nasdaq Updated: 7/14/2015

Today, First Trust transferred 10 AlphaDEX® ETFs from NYSE Arca to The Nasdaq Stock Market®. Each ETF will list and trade its shares on Nasdaq under the same ticker symbol as was used on NYSE. Additionally, each ETF’s Index Provider will change to Nasdaq Global Indexes.

“The transfer of these 10 ETFs is evidence of First Trust’s confidence that the Nasdaq marketplace is a leader in ETF listing and trading,” said Jeffrey McCarthy, Head of ETP Listings at Nasdaq. “These products exemplify the importance of exchange listing diversification and how Nasdaq is positioned to provide multi-faceted solutions to ETF issuers by supporting index creation, calculation, listing and trading-through the benchmark switch of these funds to Nasdaq Indexes. We look forward to continuing our successful partnership with First Trust and the AlphaDEX team in the future.”

Each ETF will seek investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of a Nasdaq AlphaDEX® Equity Index (each, a “New Index”). Each New Index is a modified equal-dollar weighted index developed and maintained by Nasdaq that may generate positive alpha relative to traditional passive-style indices through the use of the AlphaDEX® selection methodology.

 

Fund Name Ticker New Index
First Trust Japan AlphaDEX Fund FJP Nasdaq AlphaDEX® Japan Index
First Trust China AlphaDEX Fund FCA Nasdaq AlphaDEX® China Index
First Trust Brazil AlphaDEX Fund FBZ Nasdaq AlphaDEX® Brazil Index
First Trust South Korea AlphaDEX Fund FKO Nasdaq AlphaDEX® South Korea Index
First Trust United Kingdom AlphaDEX Fund FKU Nasdaq AlphaDEX® United Kingdom Index
First Trust Germany AlphaDEX Fund FGM Nasdaq AlphaDEX® Germany Index
First Trust Switzerland AlphaDEX Fund FSZ Nasdaq AlphaDEX® Switzerland Index
First Trust Hond Kong AlphaDEX Fund FHK Nasdaq AlphaDEX® Hong Kong Index
First Trust Canada AlphaDEX Fund FCAN Nasdaq AlphaDEX® Canada Index
First Trust Taiwan AlphaDEX Fund FTW Nasdaq AlphaDEX® Taiwan Index

 

To learn more about Nasdaq Global Indexesclick here and a Nasdaq Global Indexes representative will contact you directly.

Cybersecurity: The New ETF Frontier Updated: 7/9/2015

 

This week we launched the Nasdaq CEA Cybersecurity IndexSM to track the performance of companies engaged in the cybersecurity segment of the technology and industrials sectors. It includes companies primarily involved in the building, implementation, and management of security protocols applied to private and public networks, computers, and mobile devices in order to provide protection of the integrity of data and network operations.

Following the launch of the index, First Trust listed the First Trust Nasdaq CEA Cybersecurity ETF (Symbol: CIBR) on The Nasdaq Stock Market®. The Fund uses an indexing investment approach to attempt to replicate, before fees and expenses, the performance of the Nasdaq CEA Cybersecurity IndexSM (NQCYBR). To learn more about the ETF, click here.

Nasdaq operates an efficient platform for successfully introducing a product suite into one of the single largest pools of liquidity, including market participants that represent a full spectrum of investors. ETF issuers benefit from an end-to-end solution that provides ongoing product support including index licensing, listings opportunities, data offerings and trading services. As the home to some of the world's most innovative ventures, Nasdaq generates opportunities for issuers to access new markets and deliver new concepts that change the way the industry develops, manages and applies ETFs.

To learn more about our one-stop shop ETF and indexing solution, please visit our website. For a custom solution for your index or ETF, please feel free to reach out and we will get back to you.

Web Seminar Replay: Optimizing Behavioral Economics using Defined Outcome Investing Updated: 6/24/2015

 

Ever wonder what factors influence investment decisions? Expected returns play an obvious role, but not necessarily the most important one — behavioral factors also heavily influence investor decisions. Learn more about behavioral economics, including what drives it, how it influences portfolio construction, and how using defined outcome solutions can meet both return and behavioral needs better than traditional investment solutions.

Join Nasdaq Research; Joe Halpern, CEO, Exceed Investments; Dr. Menachem Brenner, finance professor at the Lenoard N. Stern School of Business at New York University and an international expert in derivative markets for a 60-minute web seminar where attendees will learn:

  • The behavioral responses to potential loss, risk, and ambiguity
  • How both human psychology and economic utility theory drive behavioral finance
  • How behavioral finance influences investment decisions
  • What are defined outcome investments
  • How defined outcome investments effectively balance investor returns and behavioral needs
WATCH THE REPLAY

Two New ProShares ETFs based on Nasdaq Biotech Index List on Nasdaq Updated: 6/24/2015



On June 23, 2015, ProShares listed two new ETFs, the UltraPro Nasdaq Biotechnology ETF (Symbol: UBIO) and UltraPro Short Nasdaq Biotechnology ETF (Symbol: ZBIO), tracking the Nasdaq Biotechnology Index on the Nasdaq Stock Market.

UBIO seeks to provide 3x and ZBIO seeks to provide -3x the daily performance of the Nasdaq Biotechnology Index, before fees and expenses. The Nasdaq Biotechnology Index is a modified capitalization weighted index that includes Nasdaq-listed companies classified as either biotechnology or pharmaceutical.

The Nasdaq Biotechnology Index, which tracks a number of bellwether companies in the space, returned 34.1% in 2014, far outpacing both the S&P 500, and has continued its charge in 2015. Learn what is driving this growth story for the sector in our article, “Biotech – The Growth Story Continues.”

These products join six other global funds licensed to the index, including the ProShares Ultra Nasdaq Biotechnology ETF (BIB) and ProShares UltraShort Nasdaq Biotechnology ETF (BIS). ProShares is the world’s largest provider of geared ETFs. Geared ETFs are designed to offer knowledgeable investors the opportunity to act on their views, whether it’s hedging against downturns with inverse ETFs or using a leveraged ETF to get magnified exposure to a benchmark.

Nasdaq operates an efficient platform for successfully introducing a product suite into one of the single largest pools of liquidity, including market participants which represent a full spectrum of investors. ETF issuers benefit from an end-to-end solution that provides ongoing product support including index licensing, listings opportunities, data offerings and trading services.

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 or Nasdaq proprietary indexes 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.
 

Web Seminar Replay: Understanding the Dorsey Wright Indexes Methodology Updated: 6/23/2015

Dorsey, Wright & Associates, LLC, a Nasdaq Company, has been a financial industry leader in technical analysis and relative strength strategies for over 25 years. Join John Lewis, CMT, Senior Portfolio Manager, Dorsey Wright, and Dave Gedeon, Vice President, Nasdaq Global Indexes, for an in-depth look at the methodology behind some of the most well-known smart beta indexes in the world, which serve as the basis of ETFs with more than $8.2 billion in AUM.

This 30-minute seminar will provide an overview of Dorsey Wright’s relative strength strategies and a detailed look at the newly published methodology* of the following indexes:
  • Dorsey Wright Technical Leaders Index (DWTL)
  • Dorsey Wright Focus Five Index (DWANQFF)
  • Dorsey Wright International Focus Five Total Return (DWANQIFF)
  • DWA International Developed Markets Technical Leaders Index (DWADM) 
  • DWA International Emerging Markets Technical Leaders Index (DWAEM)
  • DWA Technical Leaders Small Cap Index (DWTLSC)
Thursday, June 18th
1:00 – 1:30 pm, ET
REGISTER NOW

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.

First Australian ETF Linked to Nasdaq Index Launches Updated: 5/27/2015



 

On May 27, 2015, the BetaShares Nasdaq 100 ETF began trading on the Australian Securities Exchange (ASX: NDQ). This is the first time that Australian investors have access to this prominent benchmark.

Rob Hughes, Vice President, Head of Index & Advisor Solutions at Nasdaq said: “We’re excited to partner with BetaShares on the first Nasdaq ETF to list in Australia. This exposes Australian investors to 100 of the world’s most dynamic companies, and is another milestone in the international expansion of investment products linked to Nasdaq indexes.”

International equities continue to be attractive to local ETF investors, and the new fund broadens the offerings available for investors looking for straightforward exposure to those securities.
The Nasdaq-100 Index includes the 100 largest, non-financial companies listed on the Nasdaq Stock Market and acts as a leading barometer for strong, growth companies at the forefront of innovation.
 

Web Seminar Replay: Global Relative Strength Strategies Updated: 5/20/2015

 

If the stock market continues to outperform, will your portfolios take advantage of that trend? If the market weakens relative to other asset classes, will your portfolios adapt? With portfolios tilted heavily toward domestic equities, after six consecutive years of positive returns, perhaps it is time to consider the merits of adaptive strategies with a multi-asset global perspective.

Join Dorsey Wright and Arrow Funds for a webinar featuring Andy Hyer, DWA Client Portfolio Manager and Jake Griffith, President of Arrow Investment Advisors, LLC, as they discuss the current market environment from a global relative strength perspective. The discussion included:

  • The DWA systematic approach for global tactical asset allocation
  • An update on the Arrow DWA Balanced Fund and Arrow DWA Tactical Fund
  • An update on the enhancements to DWA’s Sector Rotation strategy
WATCH THE REPLAY 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.

Cast Your Vote! Updated: 2/18/2015

We need your help to make Nasdaq Global Indexes the ‘Most Innovative Index Provider’ of the 2015 Exchangetradedfunds.com Annual Global ETF Awards!

Why are we worthy of your vote?
Nasdaq Global Indexes:

  • Covers all asset classes
  • Calculates more than 40,000 indexes worldwide.
  • Has 180 exchange-traded products tied to our indexes with approximately $100 Billion in AUM.
  • In 2014, 27 new ETPs began tracking our indexes
  • Is currently the underlying benchmarks for 8 of the top 10 largest ETP providers in the world
  • In 2014, ETPs tracking the Nasdaq Biotechnology Index launched in Israel, Korea and London, marking 17 countries in which we have index-linked ETPs.
  • In November, two ETFs tracking Nasdaq Indexes were launched by BMO in Hong Kong, marking a new milestone of 8 ETFs for us in the Asia-Pac region.
  • The Nasdaq Buyback Achievers brand saw 5 new ETFs created based on that benchmark family in 2014.
  • Recently closed the acquisition of Dorsey, Wright & Associates, providing us with a new suite of best-in-class relative strength indexes, 17 of which have ETPs already tied to them.

 

Your vote will take less than 60 seconds!

  1. Visit Exchange-Traded Funds web site: http://www.exchangetradedfunds.com/
  2. Click on upper right image where it says “Click here to vote!”
  3. Choose the first category “Index provider that has created the most innovative ETF indexes.”
  4. Go to “In the Americas” box, and type in: Nasdaq Global Indexes


DEADLINE: Friday, February 20, 2015, 11:59 PM (23:59) PST.

Thank you for the support!

 

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.
 

White Paper: Nasdaq-100 Turns 30 Updated: 2/12/2015

How well do you know the Nasdaq-100? With exchange-traded products tied to the index exceeding $50 billion, the Nasdaq-100 is one of the most widely tracked indexes in the world. Our white paper discusses topics such as how the NDX has changed over the last 30 years, how it compares to other broad benchmarks currently and historically, and the state of tradable products tied to the index.

Replay our web seminar on the Nasdaq-100's 30th Anniversary


Download the white paper on NDX with the form below:

January 2015 Monthly Performance Report Updated: 2/4/2015

The Nasdaq PHLX Gold/Silver Sector Index is January's top performer at 15.4% and the Nasdaq Commodity HG Copper ER Index is the worst performer of January at -11.7%. Get a quick overview of Nasdaq Index performance data for our top 50 most watched indexes here.

The Nasdaq-100 Index Celebrates 30 Years of Growth & Ambition Updated: 2/4/2015

 

In 1985, Nasdaq launched the Nasdaq-100 Index® (NDX®) to track the 100 largest, non-financial companies listed on The Nasdaq Stock Market. In addition to being a barometer for the investment community on how major sectors of the market are performing, the Index also plays an important role as the basis for investible products. Today, the NDX is one of the world’s most widely followed stock indexes, with more than $50 billion in exchange-traded products tied to the Index, including the well-known PowerShares QQQ Trust® ETF (QQQ) or, simply, “the Q’s.”
At the time of launch, Nasdaq was still in its infancy (just 14 years old) and indexing was completely new territory. Since launch, the market cap of Nasdaq-100 companies has grown from $58 billion to more than $4.7 trillion today. Now, hundreds of products, including ETFs, Mutual Funds, Futures, Options and other derivatives, are tied to the index in 29 countries. While always solidly tilted to the technology sector, the NDX has evolved to include some of the top names in biotech, retail, media and industrials and is cited as a benchmark for large-cap growth performance.

 

In recognition of the 30th anniversary of the Nasdaq-100 Index, Nasdaq Global Indexes will be publishing a white paper, providing a comprehensive overview of the evolution of the index. The research piece details the lifespan of NDX including those companies that have been in since inception; the nuances of the index vs. its competitors; reasoning behind rebalances and more. We’ll send out an update when the paper is available for download.


In addition, join us for the Web Seminar: The Nasdaq-100 Turns 30: Tracking Innovation in Large Cap Growth on Tuesday, February 10th at 10 am EST.


Special Note: Bloomberg will be recording their ‘Taking Stock’ radio show live from the Nasdaq MarketSite on February 9th to cover this milestone. The line-up of guest speakers includes Q’s pioneers John Jacobs, Ben Fulton and Eric Noll; along with present-day managers Rob Hughes, Vice President Nasdaq Global Indexes, and Dan Draper, Managing Director, Invesco PowerShares. They will also be joined by Debbie Fuhr, respected founder of ETFGI, an independent research and consultancy firm.

Listen live on Monday, February 9th from 2pm -5pm Eastern Time.

 

Nasdaq and Dorsey Wright Unite to Deliver Unique Smart Beta Solutions Updated: 2/2/2015

We are thrilled that Dorsey, Wright & Associates (DWA) is now part of the Nasdaq family and our ever-expanding suite of innovative indexes and data solutions.

DWA is a registered investment advisory firm that provides comprehensive investment research and analysis through its proprietary Global Technical Research Platform and Investment Products. DWA is a respected industry leader known for applying its expertise in Relative Strength to support the investment decision-making process through leading research and technical analysis. DWA’s investment analytics are used by thousands of investment advisors and power individual stock research, model portfolios, strategies and indexes. The latter of which are used as the basis of exchange-traded funds, managed accounts, and mutual funds. DWA currently has over 130 model portfolios with an estimated $10 billion tracking the models and 17 licensed ETFs, representing approximately $5 billion in assets under management.

The acquisition brings DWA’s industry-leading smart beta indexes to the Nasdaq Index family. This transaction, along with Nasdaq’s existing suite of alternative index solutions, makes us one of the largest global providers of smart beta solutions.

Visit www.dorseywright.com to find out more about the company and their offerings. We will continue to share information on how our combined business can further help our clients’ strategies. We welcome your questions at any time at GISCustomerService@nasdaq.com.
 

John Jacobs: Nasdaq's Own Legend of Indexing Retires Updated: 1/27/2015

December 31st marked the end of a year full of significant milestones for Nasdaq Global Indexes, and it also marked the end of an era at Nasdaq.

John Jacobs retired from his full-time role as Executive Vice President of Global Information Services for Nasdaq, after 30+ years with the company. His business accomplishments are countless. In fact, John was recently featured in Journal of Indexes as a “Legend of Indexing.” While he was a tremendous leader, industry visionary and consummate professional, it’s the personal side of John that his Nasdaq family will miss the most.

Whether providing poignant farewell speeches, energetic and comprehensive business updates, or watching him bounce the newborn of a staff member on his lap while recalling with candor and fondness hilarious stories of his own parental snafus, John is irreplaceable. He is one of those rare leaders that managed to balance the high demands of the capital markets with a personal touch.

While leading Nasdaq Global Indexes, John was responsible for all aspects of business development, including the creation and licensing of indexes in the U.S. and abroad. Under his direction, Nasdaq launched the NASDAQ-100 Index Tracking Stock, better known as ‘QQQ’, in 1999, one of the most successful financial products in stock market history. Throughout his tenure, John has overseen the creation of multiple index families, across asset classes, growing the index offering from a few dozen to more than 40,000, and has grown the index business to support more than 9,000 products, including 166 ETFs.

John also served as Chief Marketing Officer for Nasdaq from 2003 to 2013, and thus was often the welcoming face for guests ‘Ringing the Bell’ at the Nasdaq MarketSite. His entertaining stories include the Bell Ringing ceremony where he reminisced over a high-school year book with an ex-classmate of his older sister Kathie Lee Gifford, to chatting with Queen Latifah and Diane Keaton. His favorite guest was tennis star Roger Federer, mainly for his humbleness and kindness – traits John could equally claim as his own.

In addition to securing the Nasdaq brand name in daily markets lexicon, his broad range of experience includes management of Nasdaq's listings and compliance group, which reviews and processes all SEC documents and financial filings. Additionally, John was part of the team that garnered a "yes" vote from more than 5,000 NASD member firms to spin off Nasdaq, paving the way for Nasdaq to become a publicly-traded company.

John is a life-long Marylander, an alumnus of the University of Maryland and holds an MBA from Loyola University. He has taught Investment Banking and other graduate courses in the MBA programs at both Johns Hopkins University and Georgetown University. More importantly, he has been married 30 years to his wife Colleen, whom he met – you guessed it – at Nasdaq, with whom he has three children.

Throughout 2015, John will continue with Nasdaq, serving in the role of advisor and consultant. As a revered leader, respected colleague and genuine friend, we thank him for all of his hard work, dedication and the legacy he leaves behind.
 

Web Seminar Replay: The Nasdaq-100 Turns 30: Tracking Innovation in Large Cap Growth Updated: 1/23/2015

How well do you know the Nasdaq-100? With exchange-traded products tied to the index exceeding $50 billion, the Nasdaq-100 is one of the most widely tracked indexes in the world.

Our discussion addressed topics from our soon-to-be published white paper, such as how the NDX has changed over the last 30 years, how it compares to other broad benchmarks currently and historically, and the state of tradable products tied to the index.

Join John L. Jacobs, Senior Advisor, Nasdaq Global Information Services; Efram Slen, Research & Product Development Specialist, Nasdaq Global Indexes and Jeff Smith, Associate Vice President, Economic and Statistical Research, Nasdaq, for a 60-minute web seminar replay.

 

Watch the Replay here.

 

First Trust Value Line ® Equity Allocation Index Fund Switches Listing to Nasdaq Updated: 1/13/2015

New Investment Objective That Corresponds to the Nasdaq AlphaDEX(R) Total US Market Index
Nasdaq today announced that First Trust will transfer the First Trust Value Line® Equity Allocation Index Fund (Symbol: FVI) from NYSE Arca to be listed on The Nasdaq Stock Market® on or about Friday, January 9, 2015. The fund's new investment objective will seek investment results that correspond generally to the price and yield (before the fund's fees and expenses) of the Nasdaq AlphaDEX® Total US Market Index. The new fund will be referred to as the First Trust Total US Market AlphaDEX® ETF (Symbol: TUSA).
"We are excited to build our partnership with our good partners at First Trust through the transfer of the First Trust Value Line® Equity Allocation Index Fund to The Nasdaq Stock Market," said Jeffrey McCarthy, Head of ETP Listings at Nasdaq. "We will continue to provide issuers like First Trust with an end-to-end solution that provides ongoing support at every level including index licensing, listings opportunities, data offerings and trading services."
The Nasdaq AlphaDEX® Total US Market Index is designed to objectively identify and select stocks across market capitalizations (including large-cap, mid-cap and small-cap companies) that exhibit growth and value factors and appear to have the greatest potential for capital appreciation. It is a modified equal-dollar weighted index comprised of U.S. exchange-listed securities of companies with capital appreciation potential.

Vote for Nasdaq Global Indexes 2015 Most Innovative Index Provider Updated: 1/13/2015

Nasdaq Global Indexes is seeking your support in nominating us for a 2015 ETFExpress Global Award. If you're reading this, we hope you agree that Nasdaq has what it takes to be “The Most Innovative Index Provider of the Year.”

Your nomination will take less than 60 seconds with three simple steps:

  1. Go to the ETFExpress web site
  2. Choose #28 “The Most Innovative Index Provider”
  3. Type in the following:

Name of Firm: Nasdaq

Contact information of Firm: Indexes@Nasdaq.com

Short justification as to why you made this choice: We have listed below some of the reasons you might consider us for The Most Innovative Index Provider. Feel free to use these or provide your own reason.

  • Nasdaq is one of the only index providers to have products listed globally covering equities, commodities and fixed income.
  • ETPs based on Nasdaq indexes are listed in 16 countries, and Nasdaq is the first index provider to have its indexes linked to ETPs in China, India, and Iceland.
  • As of 2014 year-end, Nasdaq had 166 licensed ETPs globally with approximately $100 billion in assets under management. Twenty-seven new ETPs launched that track our indexes; of those, 26 were new launches and one was a benchmark switch. Currently, we are the underlying benchmarks for eight of the top ten largest ETP providers in the world.
  • The largest dividend ETF with just under $21B in assets under management tracks the Nasdaq Dividend Achievers Select Index.
  • In 2014, ETPs tracking the Nasdaq Biotechnology Index launched in Israel, Korea, and London.
  • Our foothold in Asia continues to grow. In November 2014, two ETFs tracking Nasdaq Indexes were launched by Bank of Montreal in Hong Kong, marking a new milestone of eight ETFs for us in the region.
  • This was also a marked year of expansion for our Smart Beta Indexes. Most notable is the expansion of our Nasdaq Buyback Achievers brand with five new ETFs based on that benchmark family launching this year. In addition, we recently announced plans to acquire Dorsey, Wright & Associates later this month. With the close of that transaction, Nasdaq will be one of the largest Smart Beta Index Providers in the world, based on AUM.

The deadline for nomination is January 15, 2015. Please CLICK HERE TO VOTE NOW.

Thank you for your support!

December 2014 Monthly Performance Report Updated: 1/9/2015

The Nasdaq Axioma Equity-Commodity Gold Index is December's top performer at 5.6% and the Nasdaq Commodity Natural Gas ER Index is the worst performer of December at -29.5%. Get a quick overview of Nasdaq Index performance data for our top 50 most watched indexes here.

Nasdaq to Acquire Dorsey Wright & Associates Updated: 1/5/2015

We are pleased to announce that Nasdaq will acquire Dorsey, Wright & Associates, LLC (DWA), a market leader in data analytics, passive indexing and smart beta strategies. DWA will add to Nasdaq’s robust index portfolio, bringing model-based strategies and analysis to support the financial advisor community, and further strengthening Nasdaq’s position as a leading smart beta index provider in the U.S. The deal is expected to close in the first quarter of 2015.

DWA will increase Nasdaq’s capacity for growth in the index business across asset classes and geographies, with substantial opportunities in index licensing. The combined group will bring together DWA’s 17 ETFs and Nasdaq’s 69 licensed smart-beta ETFs focused primarily on dividend and income strategies. As a result, Nasdaq Global Indexes will become one of the largest providers of smart beta indexes with nearly $45 billion in assets benchmarked to its family of Smart Beta indexes and more than $105 billion benchmarked to all Nasdaq Indexes.

"Our index business has been a strong growth area for Nasdaq over the last decade, and the acquisition of Dorsey Wright & Associates will further cement our position as a major player and industry innovator," said Adena Friedman, President of Nasdaq. “We are always looking for opportunities to expand Nasdaq’s index offering with quality products that deepen our relationships with the investing community. DWA provides a natural complement to our business and growth strategy.”

Subject to customary conditions and approvals, Nasdaq will acquire DWA for $225 million funded through a mix of debt and cash on hand. Nasdaq expects the acquisition will be accretive to the company’s earnings at closing, excluding transaction-related costs, and does not expect a material impact on Nasdaq’s financial leverage or capital return strategy. The acquisition will further support the company's efforts to deliver consistent and stable returns to shareholders.

"Smart Beta represents one of the fastest growing sectors within the ETF market," said Tom Dorsey, President, Dorsey Wright & Associates. “This deal will allow us to grow significantly, while continuing to create products and strategies that meet the needs of our clients.”

Nasdaq intends to fuel DWA’s growth strategy by accelerating product development, raising awareness of the DWA indexes and increasing the base of potential market participants through its global distribution network. Nasdaq’s ability to create innovative indexes, its long-term relationships with ETF providers, and DWA’s analytical capabilities and smart-beta models are expected to lead to new products in more asset classes, including fixed income, currencies and commodities, and facilitate international expansion of the DWA offerings, beginning in Canada and Europe.

Additionally, there are opportunities for Nasdaq technology to enhance DWA’s web-based advisor tools used to deliver DWA’s methodology into tactical asset allocation models. The enhancements will create more opportunities for financial advisors as the market continues to move toward model-based investing.

Historically, Nasdaq has a proven ability to bolster acquired companies’ index businesses by leveraging its distribution, technology and product generation capabilities. This is best exemplified by the acquisition of the index business of Mergent in 2012. In the two years since the deal was completed, the index business of Mergent has over-achieved its business targets and returns, resulting in licensed asset growth of 100 percent.

Friedman concluded, “We intend to integrate the DWA team with our broader Nasdaq organization, leveraging DWA’s research expertise and deep relationships with the financial advisor community, and we expect to generate revenue synergies by deepening DWA’s licensing relationships with the ETF sponsor community globally.”

For more information, please contact Rob Hughes, Nasdaq Vice President/Head of Index and Advisor Solutions.
 

Crude Showing Signs of Aiding Economy Updated: 12/17/2014

Crude oil continued its slide this week, pausing around $55/barrel. The decline in crude has led to many positive gains for the economy. Chiefly, the decrease in gasoline prices has been a boon to consumers. The consumer price index (CPI) fell 0.3% this month, the most since December 2008. Many traders expect guidance from the Federal Reserve, which is set to release minutes from its meeting today.

Internationally, crude’s price drop has initiated first steps toward capital controls in Russia as the Ruble fell over 20% this week. The Central Bank of Russia raised rates in a surprise announcement Tuesday. Gold prices retreated slightly, settling around $1195/oz in morning trading, nearly flat for the year.

“Lower energy prices and overall lower inflationary pressure continue to have positive effects for the US economy, and this looks to continue into 2015,” said Dave Gedeon, Vice President, Nasdaq Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 2.26% since Friday’s close. Year-to-date performance for the index is up 30.7%.
  • NASDAQ GLOBAL OIL & GAS INDEX (NQG0001) is up 4.14% since Friday’s close. Year-to-date performance for the index is down 19.4%.
  • NASDAQ INTERNATIONAL DIVIDEND ACHIEVERS (DAT) is up 0.63% since Friday’s close. Year-to-date performance for the index is down 6.5%.

INDEX TO WATCH

  • The Nasdaq US Large Cap Index (NQUSL) is a float adjusted market capitalization-weighted index designed to track the performance of securities in Nasdaq US Benchmark Index that comprise the Large-cap segment of companies. Currently, the index contains 427 components. Additional disposable income created by the slide in crude may increase activity in this index. It has increased 6.41% year-to-date.

The Spaulding Group Launches New Custodian Guidelines for Transparency in Benchmark Costs Updated: 12/16/2014

The Spaulding Group, the leading performance measurement service firm in the money management industry, today announced the launch of the “Custodian Guidelines for Transparency in Benchmark Cost” in partnership with BNY Mellon, State Street and Northern Trust. The “Guidelines” were developed with the goal to improve transparency on embedded fees for benchmark data, and enable investors to make informed decisions by understanding the details behind the fees they are paying.

“The ever-increasing cost of benchmark data has been an issue that has grown in importance every year. It has been a major theme of our Performance Measurement Forums, and a hot topic of discussion at our annual Performance Measurement, Attribution and Risk conferences and in our surveys,” said David Spaulding, Founder and CEO of The Spaulding Group.

The Spaulding Group worked closely with three participating custodian banks to create a set of principles that the industry should abide by in order to increase awareness of the costs associated with indexes. This list of best practices is designed to lead to further efficiencies in the asset management industry by ultimately lowering fees paid by end-clients, predominantly asset owners.

In conjunction with the adoption of the “Guidelines," Nasdaq has agreed to license its Nasdaq Global Index Family at no cost to custodian banks that abide by the guidelines set forth by The Spaulding Group and will be offered by BNY Mellon, State Street, and Northern Trust as a low-cost reporting option.

Banks can join by publicly acknowledging they will abide by the principles that have been outlined.

“As the industry examines the fees associated with benchmarks, Nasdaq is focused on providing low-cost indexes that span geographies and asset classes,” said John Jacobs, Executive Vice President, Global Information Services at Nasdaq. “We are excited to offer our Global Index Family to these custodian banks, as they work to increase transparency on the cost of index data. We applaud the work done by The Spaulding Group, BNY Mellon, State Street, and Northern Trust to bring this key issue to the forefront of the asset management industry.”

A whitepaper focused on benchmarks will appear in the Spring issue of The Journal of Performance Measurement, co-authored by The Spaulding Group, BNY Mellon, State Street and Northern Trust.

For more information on the Spaulding Group’s “Guidelines for Transparency in Benchmark Cost," and full transcript of the custodian bank interviews, click here. To be contacted by a member of our team, please click here.
 

Research Paper: Nasdaq Hong Kong Banks Updated: 12/8/2014



Winner! BMO Hong Kong Banks ETF - Best Thematic ETF & Best New ETF (Hong Kong) - Asia Asset Management ETF & Indexing Awards 2015
Based on the Nasdaq Hong Kong Banks Index.



The Nasdaq Hong Kong Banks Index (NQHKBNK) includes securities classified as a Bank under the Industry Classification Benchmark (ICB) that are listed on the Hong Kong Stock Exchange. Index capping is designed such that at no point will the top five securities have a collective weight greater than or equal to 74%. The book value of the index is much lower than that of global banks and Hong Kong. Is this sector undervalued?
Download new research on The Nasdaq Hong Kong Banks Index with the form below:

Research Paper: Nasdaq Asia ex Japan Dividend Achievers Updated: 12/8/2014



BMO Asia High Dividend ETF - Winner! Most Innovative ETF – Asia Asset Management ETF & Indexing Awards 2015
Based on the Nasdaq Asia Ex-Japan Dividend Achievers Index.



The Nasdaq Asia ex Japan Dividend Achievers Index (DAAXJP) is designed to include securities that have at least three consecutive years of increasing annual regular dividend payments. The securities must be included in the Nasdaq Asia ex-Japan Index and be a member of any of the following country indexes in the Nasdaq Global Index family: Hong Kong, Singapore, China, India, Indonesia, Korea, Malaysia, Philippines, Taiwan and Thailand. Additionally, a security must have a minimum adjusted market capitalization of 200 million USD, a minimum three month daily average dollar trading volume of 500 thousand USD, and must have a Dividend Sustainability score greater than 80 to be eligible for inclusion.

Download new research on Nasdaq Asia ex Japan Dividend Achievers Index with the form below:

Black Friday for Black Gold Updated: 12/3/2014

 

The precipitous decline in crude oil prices continued this week as OPEC maintained current production levels. WTI Crude contracts slid 10.2% on Friday, as market prices converge toward domestic producers’ break-even production costs.

While the slide in crude prices may be hurting domestic tight oil producers, this move is seen as a boon to the overall domestic economy. 208,000 jobs were added in November according to the recent ADP report, continuing a recovery trend which began after the recession ended in 2013. US auto sales increased 4.6% last month as lower gasoline prices spurred demand. Gold prices turned slightly positive for the year, settling around $1210/oz in morning trading.

“Despite lackluster Black Friday sales, lower energy prices are providing a cushion to the domestic economy in several different areas including job creation, transportation, and production,” said John Jacobs, Executive Vice President, Nasdaq Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 0.80% since Friday’s close. Year-to-date performance for the index is up 35.1%.
  • PHLX UTILITY SECTOR (UTY) is up 0.15% since Friday’s close. Year-to-date performance for the index is up 20.04%
  • NASDAQ GLOBAL GOLD & PRECIOUS METALS (QGLD) is up 5.19% since Friday’s close. Year-to-date performance for the index is down 8.2%.

INDEX TO WATCH

  • The NASDAQ Global Oil & Gas Index (NQG0001) follows the general oil and gas industry and includes 479 securities from developed and emerging markets. The largest companies by float adjusted market cap are Exxon Mobil, Chevron, Royal Dutch Shell and BP. OPEC supply remaining steady may affect market volatility and create movement in this index.

 

The Hong Kong Shanghai Connect and its Impact on Indexing Updated: 12/2/2014

 

Recently Rob Hughes, Vice President/Head of Index and Advisor Solutions, traveled to Hong Kong to focus on several Asia-Pacific initiatives, including the Hong Kong-Shanghai Connect program.

Launched on November 17th, the Hong Kong-Shanghai Connect initiative allows mainland investors to buy Hong Kong-listed equities directly and waives the need for investment licenses. The program is expected to strengthen the two cities’ roles as global financial centers and open the door for foreigners to a $4.2 trillion pool of capital.

During an interview with Bloomberg TV’s Rishaad Salamat, Hughes discussed the implications of the Shanghai-Hong Kong Stock Connect for U.S. investors and the Indexing business. “As soon as the stock connect program hit the wires, ETF sponsors in the U.S. and Europe were calling and asking what we are going to do in Hong Kong, and how can they approach the market,” he commented. Hughes also sees a tremendous amount of growth potential for ETFs in Hong Kong, and for China retail investors, accessing global ETFs in Hong Kong is a new opportunity. View the Bloomberg Interview.

Hughes also met with Fund Selector Asia, providing additional commentary. “A new access point to the A-share market creates tremendous interest in the developed world. Retail and institutional investors are interested, brokerages may want to open here, ETF managers can maybe run an ETF here. Don’t underestimate how much interest there is in access to Chinese markets." Hughes commented that the local ETF market has room to grow, as retail investors account for just 20 percent of the market, as compared to more than 50 percent in the United States.

 

Nasdaq Global Indexes will continue to closely monitor this initiative, as well as other opportunities in the Asia-Pac market as we firmly believe this is market poised for growth. To view a list of our current index-related ETFs listed in Asia, click here. For more information on the Connect program, view the Nasdaq corporate blog, Everything You Need to Know: Shanghai-Hong Kong Stock Connect.

 

Encouraging Signs Heading Into Holiday Season Updated: 11/26/2014

Continuing jobless claims were lower than expected, while initial claims remained high but flat over the past week. A positive sign as we head into the Thanksgiving holiday was personal spending in October increasing by 0.2% versus a prior month decrease of -0.2%. Durable goods orders increased at a faster pace of 0.4% beating expectations of a decrease of -0.6%.

Worries remain over crude oil’s continued slide, breaking through a floor of $74/barrel on WTI contracts. OPEC is considering action on supply where oil ministers may decide to cut production when they meet on November 27th as oil falls near 2010 levels. Meanwhile, gold pared yearly losses to be almost flat for the year near the $1200/oz level.

“We are seeing cautiously positive indicators heading into the crucial holiday shopping season. Much remains to be seen as concerns over crude oil and overall high market volatility are paring expectations” said Nasdaq Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ CHINA INDEX (NQCN) is up 3.77% since Friday’s close. Year-to-date performance for the index is up 2.39%.
  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 2.23% since Friday’s close. Year-to-date performance for the index is up 32.25%.
  • NASDAQ CLEAN EDGE GREEN ENERGY (CELS) is up 1.48% since Friday’s close.

INDEX TO WATCH

  • The NASDAQ Global Oil & Gas Index (NQG0001) follows the general oil and gas industry and includes securities from developed and emerging markets. The current number of companies in the index is 479; the largest companies by float adjusted market cap are Exxon Mobil, Chevron, Royal Dutch Shell and BP. Possible policy changes in the coming days and weeks on supply may affect market volatility and create movement in this index.

Nasdaq Biotech Index Continues to Expand Global Presence Updated: 11/25/2014

We are excited to announce our continued expansion into Europe by partnering with Source to launch the first Europe-listed ETF to track the Nasdaq Biotechnology Index (NBI), the Source Nasdaq Biotechnology UCITS ETF (SBIO).

The Nasdaq Biotechnology Index (NBI) reflects the performance of over 100 biotechnology and pharmaceutical companies listed on The Nasdaq Stock Market. The 122 constituents range from global giants with diverse portfolios to smaller companies focused on a single treatment.

"Since the Nasdaq Biotechnology Index launched in 1993, it has evolved into a key industry benchmark for tracking the growth and performance of this increasingly important sector," Rob Hughes, Nasdaq head of index and advisor solutions said. "Nasdaq has been home to some of the world's most innovative companies in the Biotech sector and we are proud of our history and partnerships in the space. We are excited to team with another innovator, Source, who will introduce the Nasdaq Biotech Index to a European audience for the first time."

The Source Nasdaq Biotechnology UCITS ETF is denominated in USD and will trade on both the London Stock Exchange and the SIX Swiss Exchange. It is also registered for sale in Austria, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands and Norway.

To learn more about the Nasdaq Biotechnology Index, please visit the NBI Overview page.

Foreign Stimulus Lifts Domestic Prospects Updated: 11/19/2014


In a responsive action, the prime minister of Japan, Shinzo Abe, called for new elections to save his party’s hopes of a tax stimulus to support Japan’s fragile economy. This helped to propel the US dollar to 7-year high against the Japanese Yen to settle at ¥117.69/USD with traders awaiting the release of the minutes from the US Federal Reserve meeting. Meanwhile, contracts on West Texas Intermediate crude recovered slightly, up 0.54% from last week’s 5-year lows, signaling a new support level for traders. In a drastic downturn of North American temperatures, heating oil futures are up 0.99% in just under 5 days of trading.

“An active response from Japan’s Abe is an encouraging sign for the world economy. We are entering a very delicate period for the US economy. Any positive news will help support markets going into the holiday season,” said John Jacobs, Executive Vice President of Nasdaq Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ OMX GLOBAL GOLD & PRECIOUS METALS (QGLD) is up 3.17% since Friday’s close. The price of gold is currently $1,177 per ounce, up $13 since last week.
  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 2.35% since Friday’s close. Year-to-date performance for the index is up 30.2%.
  • NASDAQ UTILITY SECTOR (UTY) is up 1.43% since Friday’s close. The index is up 19.02% YTD.


INDEX TO WATCH

  • The PHLX Oil Service Sector (OSX) is comprised of corporations in the oil services industry. Currently, the index includes 15 securities, both domestic and international. This week, Halliburton announced the purchase of Baker Hughes, both components of OSX.

NASDAQ INDEX BUSINESS EXPANDS ETF PRESENCE IN ASIA By: Rob Hughes
on 11/19/2014


Nasdaq Aligns with BMO and Local Market Participants to Launch Two ETFs on Hong Kong Exchange

Nasdaq recently announced two of its indexes are the basis for ETFs recently launched by BMO on the Hong Kong Stock Exchange. The BMO Hong Kong Banks ETF (Stock Code: 3143) tracks the Nasdaq Hong Kong Banks Index, and the BMO Asia High Dividend ETF (Stock Code: 3145) tracks the Nasdaq Asia ex-Japan Dividend Achievers Index.

The BMO Asia High Dividend ETF launch is the latest example of continued innovation around the Nasdaq Dividend Achievers family.

“This milestone for our index business in Asia Pacific is due to our close collaboration with local asset managers, exchanges and other local participants, who understand investor demand and the local environment. This allows us to offer consumers new opportunities for their investment portfolios," Rob Hughes, Nasdaq head of Index Services, said.

In 2013, the Guotai NASDAQ-100 Exchange Traded Fund, the first-ever ETF in China based on a U.S. Index, listed in Shanghai, , along with similar ETFs in Korea, India and Japan – all tracking the NASDAQ-100, one of the most liquid, most followed indexes in the world. Over the past year, additional ETFs – based on Nasdaq Indexes - have launched in Asia, including The Mirae Asset Tiger Nasdaq BIO ETF (KRX: Ticker 203780), based on the Nasdaq Biotechnology Index, which launched earlier this year on the Korean Exchange.

“We have been honored to work with fantastic firms all around Asia to bring innovative products to market, and we expect to continue bringing more ETF-related opportunities to Asia, based on the Nasdaq Index Families, such as Dividend Achievers, Biotech, Semiconductor and other indexes that can provide opportunities for Asia-based investors,” Hughes said.

Nasdaq’s Global Index Group offers comprehensive index services, including design, calculation, administration, licensing, research, global visibility, data distribution and exchange-traded product (ETP) listing and licensing. Currently, there are more than 150 ETPs with $100 Billion in AUM tracking some of Nasdaq’s 41,000 Indexes.

 

Europe Weighing on Domestic Growth Prospects Updated: 11/12/2014

 

United States September wholesale inventories announced today are a higher 0.3% versus a consensus increase of 0.2%. Comments from Bank of England governor Mark Carney echoed Fed officials’ concerns over European economic stagnation having a negative effect on global growth which would impede domestic growth of several key economic indicators in 2015. Meanwhile, contracts on West Texas Intermediate crude continued their slide breaking far below most traders’ $80 support level to settle around $77 per barrel. Year to date, domestic crude is down 21.4% and Brent crude down 26.7%, the lowest in over five years.


“Coupled with crude’s slide, concerns voiced by both Bank of England Governor Mark Carney and European Central Bank President Mario Draghi are having a negative effect on most investors’ outlook on domestic growth in 2015,” said John Jacobs, Executive Vice President of Nasdaq Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 1.48% since Friday’s close. Year-to-date performance for the index is up 30%.
  • PHLX OIL SERVICE SECTOR (OSX) is down 0.55% since Friday’s close. The price of oil is currently $77 per barrel.
  • PHLX Gold/Silver Sector (XAU) is down 1.49% since Friday’s close. The price of gold is currently $1,164 per ounce, down $6 since last week.

INDEX TO WATCH

  • The NASDAQ Global Buyback Achievers Index (DRBG) is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in its latest fiscal year. Currently, the index includes 192 securities, both domestic and international. Over the last year, the index has produced return of 10.15% through the end of October.

 

Nasdaq Global Buyback Achievers Index is Basis for new Invesco PowerShares ETF By: Rob Hughes
on 11/10/2014

Nasdaq’s Global Buyback Achievers™ Index is the basis for InvescoPowershares’ most recent ETF launch – the PowerShares Global Buyback Achievers UCITS ETF (symbol: BUYB). This marks the first product based on the successful Nasdaq Buyback AchieversTM Index family to launch in the UK and Europe.

“Nasdaq is proud to team with InvescoPowershares again to launch a product based on one of our most successful franchises,” said Rob Hughes, head of Index Services at Nasdaq. “Smart Beta indexes, and products linked to them, have provided more opportunities for investors to manage risk and diversify their portfolios. The Buyback concept has proven successful in identifying companies that have - through the use of share buybacks - delivered increased shareholder value and outperformance over the broader market.”

The launch is the latest example of continued innovation around the Nasdaq Buyback Achievers family. In May, InvescoPowershares launched the international version of this Index as an ETF in the US, The Powershares Nasdaq International Buyback Achievers Index ETF (symbol: IPKW).
The Nasdaq Global Buyback Achievers™ Index is comprised of securities from the Nasdaq US Buyback Achievers™ Index and the Nasdaq International BuyBack Achievers™ Index. The Nasdaq US Buyback Achievers Index is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing twelve months and the Nasdaq International BuyBack Achievers Index is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in its latest fiscal year. The Index began on August 11, 2014 at a base value of 1,000.00.
For more information, contact Rob Hughes, Nasdaq Global Indexes, +1 212 231 5836.
 

October Monthly Performance Report Updated: 11/4/2014

The NASDAQ Biotechnology Index is October's top performer at 8.5% and the PHLX Gold/Silver Sector Index is the worst performer of October at -20.0%. Get a quick overview of Nasdaq Index performance data for our top 50 most watched indexes here.

White Paper: Stock Buybacks Updated: 10/22/2014

Over the past five years, the stock market has experienced a strong and consistent recovery. Major indexes are near record levels. After such a long, sustained bull market, one might ask, “Who are the buyers driving this market?” The answer, perhaps surprisingly, is that listed companies themselves are among the biggest buyers of stock.. To be precise, companies are buying back their OWN stock via stock buyback (or share repurchase) programs. This trend has companies buying more of their stock than individuals, hedge funds, and investment institutions.


Download the white paper on Stock Buybacks with the form below:

Web Seminar: Finding Yield in a Rising Interest Rate Environment - 1 CE Credit Updated: 10/15/2014

Against a backdrop of low interest rates, investors may be finding it difficult to maintain the level of income they need from their investment portfolios. Join Nasdaq Global Indexes as we host Recon Capital and Highland Capital Management to present ways that investors can position themselves in a rising interest rate environment. The firms will present alternatives for income-oriented investors that include short-duration strategies.

Host: David Krein, Nasdaq Global Indexes Head of Research
Speakers: Kevin Kelly, Chief Investment Officer of Recon Capital Partners and Ethan K. Powell, CPA, CFA - Chief Product Strategist at Highland Capital Management

Listeners will walk away with a better understanding of:

  • Alternatives to traditional fixed income that can produce high income potential in all markets
  • Strategies and products that have low correlation to other asset classes
  • How to manage duration in a rising interest rate environment ETFs that provide access to alternative income strategies

As a participant in the CFA Institute Approved-Provider Program, Nasdaq has determined that this program qualifies for 1 credit hour. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE tracking tool.

This web seminar aired on Tuesday, October 28th
10:00 – 11:00 a.m., ET
Watch the Replay Now
 

Federal Reserve Minutes Released Today – Precursor to Month End Updated: 10/8/2014

Latest Federal Reserve minutes will be released at 2pm ET today. At the end of this month, the Federal Reserve will meet again and the momentous tapering of bond buying is expected to be finalized. After being as high as $85B of bond buying per month, this expected announcement would mark the end of Quantitative Easing 3 (QE3), which began in September 2012.

“With the expectation of the US bond buying program officially coming to a close at the end of the month, interest rate hikes are currently opposed, in the short run, by Federal Reserve Chair Janet Yellen,” said David Krein, Head of Research, Nasdaq Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 2.86% since Friday’s close. Year-to-date performance for the index is up 17% after being above 20% at the end of February, and down 5% by mid-April.
  • PHLX OIL SERVICE SECTOR (OSX) is down 2.22% since Friday’s close. The price of oil is currently $87.64 per barrel, down $2 since last week.
  • PHLX Gold/Silver Sector (XAU) is down 3.44% since Friday’s close. The price of gold is currently $1,207 per ounce, up $15 since last week.

INDEX TO WATCH

  • The NASDAQ Technology Dividend Index (NQ96DIVUS) consists of 96 technology and telecommunications securities that pay a regular dividend. Over the last year, the index has produced an annual yield of 3.03%, exceeding the NASDAQ US Technology Index’s 1.57% figure.

Nasdaq and Exceed Partner for Structured Products Index Updated: 10/7/2014

Nasdaq Global Indexes and Exceed Investments have released a series of indexes based on structured products, offering U.S. investors defined outcomes, increased transparency and capital protection in a passive vehicle.

This groundbreaking series of indexes aims to provide the transparency of an index with the capital protection that comes with a structured product.

The Nasdaq Exceed Family of Structured Indexes (patent pending), was launched on September 23. Each of the three indexes in the series is based on structured products chosen by Exceed and provides a different level of capital protection and varying defined outcomes.

The Nasdaq Exceed Structured Protection Index (EXPROT) invests in portfolios with a maximum equity exposure of 12.5% and offers potential upside participation capped at roughly 15%. The Structured Hedged Index (EXHEDG) offers 10% protection against initial downward moves with geared 150% upside participation up to a maximum cap. The Structured Enhanced Index (EXENHA) offers no protection against declines but gives 200% geared upside subject to a maximum cap.

Each index is tied to an underlying portfolio of structured products based on the S&P 500 that is chosen and managed by Exceed in order to customize the index's risk profile by using a series of products with different potential return outcomes from a wide range of counterparties. The defined exposures are achieved by tracking a portfolio of structured investments comprising a rolling basket of investment grade fixed-income securities and cleared ”off-the-shelf” options.

By allowing exposure to a range of different products via an index, Exceed and Nasdaq aim to offer investors greater control over the outcomes and to mitigate counterparty risk by purchasing products from different issuers. This index-based strategy also seeks to resolve the issue of illiquidity inherent in structured notes, as an index is more readily tradable than a fixed-term note.

NASDAQ® and NASDAQ OMX® are registered trademarks of The NASDAQ OMX Group, Inc. 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 or NASDAQ proprietary indexes 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.© 2014. The NASDAQ OMX Group, Inc. All Rights Reserved.

Web Seminar Replay: Building Better Bond Ladders Updated: 10/6/2014

Join David Krein, Head of Research, Nasdaq Global Indexes; Matt Patterson, Managing Director, LadderRite Portfolios LLC; and Joe Becker, Senior Fixed Income Product Strategist, Invesco PowerShares, for a complimentary 60-minute web seminar to discuss bond ladders. Bond laddering is increasing in popularity because of the benefits it offers investors. Learn how to simplify the challenges associated with them, receive an overview of the Nasdaq LadderRite Corporate Bond Indexes, and ask questions.

Watch the Replay

Markets are down heading into historic month of October Updated: 10/1/2014

With all of the hoopla surrounding the Middle East, Hong Kong, Kiev, and other parts of the world, the markets are down this week. On the US employment front, the ADP employment report came out for the month of September, beating expectations with 213,000 new jobs in private payroll. Consensus estimates were 200,000.

“With the expectation of the US bond buying program officially coming to a close at the end of the month, October looks to be a historic month,” said David Krein, Head of Research, Nasdaq Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 2.21% since Friday’s close. Year-to-date performance for the index is up 19% after being above 20% at the end of February, and down 5% by mid-April.
  • PHLX OIL SERVICE SECTOR (OSX) is down 2.01% since Friday’s close. The price of oil is currently $92.29 per barrel.
  • PHLX Gold/Silver Sector (XAU) is down 3.06% since Friday’s close. The price of gold is currently $1,215 per ounce, down $71 from the end of August.

INDEX TO WATCH

  • The NASDAQ Middle East Africa Index is a float adjusted market capitalization-weighted index, and tracks the performance of securities located in Middle East Africa. The index is rebalanced semi-annually, on the close of trading the third Friday in March and September. The September semi-annual evaluation occurred Friday, September 19. The index currently includes 233 securities. The index is down -0.3% this week but up 7.8% year-over-year.

NASDAQ Global Index Family Semi-Annual Rebalance Leads to 234 More Indexes Updated: 9/22/2014

Effective September 22, 2014, NASDAQ OMX will launch 234 additional indexes as a result of our semi-annual evaluation of the NASDAQ Global Indexes.

The comprehensive NASDAQ Global Index FamilySM covers international securities segmented by geography, sector, and size. The NASDAQ OMXtransparent and rules-based selection method results in a complete representation of the global investable equity marketplace. The indexes cover 45 individual countries within Developed and Emerging Markets, and facilitate a multitude of tracking, trading, and investing opportunities. 

The NASDAQ Global Index (NQGI) benchmark provides broad exposure for more than 98% of investable large-, mid-, and small-cap securities. The family is further broken down across segments, regions, countries, sectors, and capitalization size. Our free float-adjusted, market cap-weighted methodology utilizes ICB classifications–resulting in indexes calculated as Price Return, Total Return, and Net Total Return.

As explained in the index methodology, the NASDAQ Global Indexes are evaluated semi-annually in March and September. Following the initial evaluation upon launch of the Global Index family, any indexes that contained less than five Index Securities were not launched. After the September evaluation of the index family, 234 of these indexes have met the index methodology requirements and will be launched on Monday, September 22, 2014.
For more information, please contact indexdatasales@nasdaqomx.com.

Disappointing Jobs Report Not Hindering Market Performance Updated: 9/17/2014

The Bureau of Labor Statistics (BLS) reported 142,000 new non-farm jobs were created in the month of August. This falls well short of the 225,000 monthly average of new jobs created through the end of July. US markets have not responded negatively to this news, with broad US benchmarks remaining up this week. Part of the market optimism could stem from the push that the result of this weak jobs report could mean low interest rates may continue well into the future.


“Despite the worst monthly jobs report coming out of the BLS since December of 2013, the US markets have continued to propel forward,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 0.98% since Friday’s close. Year-to-date performance for the index is up 20% after being above 20% at the end of February, and down 5% by mid-April. Amgen is up 1.2%, this week.
  • PHLX OIL SERVICE SECTOR (OSX) was up 0.15% as of noon Wednesday. The price of oil is currently $94.19 per barrel, up $2 from last week.
  • PHLX Gold/Silver Sector (XAU) was up 0.27% as of noon Wednesday. The price of gold is currently $1,235 per ounce, up $4 from last week.

INDEX TO WATCH

  • The NASDAQ Global Index is a float adjusted market capitalization-weighted index, and tracks the performance of 98% of the listed market cap in the global equity space. The index is rebalanced semi-annually, on the close of trading the third Friday in March and September. The September semi-annual evaluation will occur Friday, September 19. The index currently includes 9,054 securities. The index is up 0.2% this week but up 11.2% year-over-year.

Global, European Markets Down Fourth Consecutive Day Updated: 9/10/2014

Global and European markets are down for the fourth day in a row as news around the Scottish independence referendum loom large. The markets have built in this negative sentiment while awaiting the implementation of further European sanctions on Russia.


“Global and European markets are down today, marking the fourth consecutive drop in the respective markets with much happening on the political front in Scotland and Russia,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 0.65% since Friday’s close. Year-to-date performance for the index is up 20% after being above 20% at the end of February, and down 5% by mid-April. Gilead is up 1.6%, this week.
  • PHLX OIL SERVICE SECTOR (OSX) was down 2.06% as of noon Wednesday. The price of oil is currently $91.62 per barrel, down $2 from last week.
  • PHLX Gold/Silver Sector (XAU) was down 3.05% as of noon Wednesday. The price of gold is currently $1,247 per ounce, down $19 from last week.

INDEX TO WATCH

  • The NASDAQ Global Index is a float adjusted market capitalization-weighted index, and tracks the performance of 98% of the listed market cap in the global equity space. The index currently includes 9,055 securities. The index is down 1.2% this week but up 12.5% year-over-year.

Markets Are Flat Ahead of the ADP Employment Report Updated: 9/3/2014

ADP employment report, which covers private employment in the US, is expected to be distributed tomorrow. The NASDAQ US Benchmark, a barometer for large, mid and small cap stocks in the US, is flat this week. The S&P 500, NASDAQ Composite and Dow all have similarly registered no gains this week.

“On the heels of the ceasefire agreement being outlined by Russia and Ukraine, the European and Emerging Markets have responded today with gains of 80 and 160 basis points, respectively,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 0.56% since Friday’s close. Year-to-date performance for the index is up 22% after being above 20% at the end of February, and down 5% by mid-April. Gilead is up 0.98%, this week.
  • NASDAQ OMX Clean Edge Smart Grid Infrastructure (QGRD) was up 1.12% as of noon Wednesday. Some of the index’s largest holdings include Quanta Services, ITC Holdings and Red Electrica.
  • PHLX Gold/Silver Sector (XAU) was down 3.49% as of noon Wednesday. The price of gold is currently $1,267 per ounce, down $19 from last week.

INDEX TO WATCH

  • The NASDAQ Emerging Markets Index is a float adjusted market capitalization-weighted index which includes securities, in countries designated as Emerging Markets. The index currently includes 2,376 securities and some of the larger holdings include Samsung, China Mobile, and Petrobras. The index is up 1.5% this week and 11.2% year-to-date.

 

Multi-Asset ETFs Continue to Grow By: Rob Hughes
on 8/27/2014

We were pleased to see MDIV and YDIV, which are issued by First Trust and based on the NASDAQ US Multi-Asset Diversified Income Index and NASDAQ International Multi-Asset Diversified Income Index respectively, mentioned in a recent article regarding multi-asset ETFs. Indexers play a prominent role in the accelerating multi-asset marketplace. Underlying this trend are investors seeking higher yields in a low rate environment. However, they have demanded that it done in a thoughtful, risk-managed way. Assembling indexes of diverse, high-yielding asset classes using a transparent, rules-based methodology can help raise investor confidence that both goals are being addressed simultaneously.

Read more about the First Trust ETFs here.

Markets Are Flat Awaiting Fed Meeting Minutes Updated: 8/20/2014

At 2pm EST the Federal Reserve will release minutes from its latest monetary-policy meeting. The S&P 500 and Dow Jones Industrial Average have been up for two straight days, while the NASDAQ Composite has had gains for the past five days.

“Markets are giving pause while awaiting the results from the most recent monetary-policy meeting from the Federal Reserve. Heading into today, the NASDAQ Composite has had five straight days of gains,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 1.63% since Friday’s close. Year-to-date performance for the index is up 18% after being above 20% at the end of February, and down 5% by mid-April. Celgene is up 3.7%, this week.
  • NASDAQ CLEAN EDGE GREEN ENERGY (CELS) was up 2.21% as of noon Wednesday. Some of the index’s largest holdings include Tesla Motors, Linear Technology and First Solar.
  • PHLX Gold/Silver Sector (XAU) was flat with a return of 0.01% as of noon Wednesday. The price of gold is currently $1,293 per ounce, down $12 from last week.

INDEX TO WATCH

  • The NASDAQ Global Buyback Achievers Index is comprised of securities that have effected a net reduction in shares of 5% or more in the past year. The index currently includes 193 securities and some of the larger holdings include Home Depot, Oracle and Airbus Group. The index launched on August 11, 2014, and is up 1.3% this week.

Despite Lackluster US Retail Sales Figures for July, Market is up Updated: 8/13/2014

Today, July US retail sales figures were released by the Commerce Department. According to the report, figures came in “virtually unchanged… from the previous month and 3.7 percent above July 2013.” Despite this report’s results, the US markets are up strongly this week with major US benchmarks up between 1% and 1.5%.

“The retail sales report points to an ongoing, though modest, consumer recovery. Though Q2 earnings season is largely behind us, recent strong announcements, such as Priceline on Monday, evidence how specific sectors are contributing to this picture,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 1.75% since Friday’s close. Year-to-date performance for the index is up 13% after being up above 20% at the end of February. Biogen and Gilead are up 2.71% and 2.14%, respectively, this week.
  • NASDAQ CLEAN EDGE GREEN ENERGY (CELS) was up 1.54% as of noon on Wednesday. Some of the index’s largest holdings include Tesla Motors, Linear Technology and First Solar.
  • PHLX Gold/Silver Sector (XAU) was up 2.17% as of noon on Wednesday. The price of gold is currently $1,308 per ounce.

INDEX TO WATCH

 

  • The NASDAQ Composite (COMP) measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. The index currently includes 2,555 securities and some of the largest holdings include Apple, Microsoft, Google, Intel, Amazon and Facebook. The index is up 1.4% this week and 6% year-to-date.

Market Outlook is Optimistic with Unemployment at a New Low Updated: 8/6/2014

The unemployment rate continues to fall, hitting 6.2% this month. Jason Furman, Chairman of President Obama’s Council of Economic Advisors, takes this drop in unemployment as a good sign, but believes that wages still need to further increase. He states, “Over the last year or two, we have seen faster wage growth, but it’s still nowhere near the wage growth that we need.” According to the Financial Times, Fed Chair Janet Yellen agreed that the economy has registered “notable improvements” and argued that while the economy is not yet at full health, it is moving in the right direction.

“This is the busiest reporting week of the quarter for the NASDAQ Biotechnology Index. Ten companies, including Regeneron, the seventh largest stock in the Index, reported on August 5th; 15 companies report on August 6th; and 25 companies, including Mylan, the ninth largest stock in the Index, report on August 7th,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 1.3% since Friday’s close. Year-to-date performance for the index is up 12% after being up above 20% at the end of February. Amgen and Gilead are up 2.50% and 1.53%, respectively, this week.
  • NASDAQ CLEAN EDGE GREEN ENERGY (CELS) was up 2.63% as of noon on Wednesday. Some of the index’s largest holdings include Tesla Motors, Linear Technology and First Solar.
  • PHLX Gold/Silver Sector (XAU) was up 1.51% as of noon on Wednesday. The price of gold is currently $1,305 per ounce, up $11 this week.

INDEX TO WATCH

  • NASDAQ Internet Index (QNET) consists of 98 securities engaged in internet-related services. Some of the largest holdings include Facebook, Google, Priceline and Amazon. The index is up 12% in the last three months and 22% in the last year.

 

NASDAQ Global Index Family Now Available on Quandl Updated: 8/1/2014

The entire NASDAQ Global Index Family is now accessible world-wide on Quandl, a leading open platform for financial and economic data on the internet. This makes NASDAQ OMX the first leading index provider to distribute its proprietary index level performance information on Quandl’s site, in a completely free, transparent and downloadable form.

“Providing easy, user friendly, flexible access to our data is a guiding principle of the NASDAQ Index Elite Partner Program,” said Oliver Albers, Head of Sales for Global Information Services. Quandl, trusted by thousands of professionals as a reliable data source, is the next generation data distribution model for financial services and we are excited to work with them to ensure all investors have the capability to access our high-quality index content.”

Via the Quandl platform, the entire NASDAQ Global Index Family will now be accessible directly from Excel, R, Python, Matlab and many other tools, as well as through a free and open API.

“We are very excited to join NASDAQ Elite Index Data Partner program. This partnership is fantastic for our 100,000 monthly users who now have access to a comprehensive suite of indexes from one of the world’s premier index providers,” said Tammer Kamel, CEO of Quandl. “NASDAQ’s coverage is total, giving Quandl users a complete index solution.”

Video: John Jacobs on The Future of Our Index Business By: John Jacobs
on 8/1/2014

John Jacobs, Executive Vice President, NASDAQ OMX Global Information Services, addresses the the future of our indexing business in the fifth installment of his video series.


Transcript: Let’s take a look at where we think NASDAQ OMX Global Indexes will be in a year or two down the road. As a global indexer with multi-asset classes, our near term strategy is to continue to roll out our superior technology on two fronts: The ability to calculate more indexes across more asset classes, so you’ll see us adding in more asset classes like fixed income and commodities. And the ability to have a superior data offering. We’re going to be able to offer data in a far more convenient fashion to the end user in a better way than it’s ever been offered before. So those are two near-term strategies. In addition, there’s been a tremendous movement and demand from the buy side and the sell side, those firms on the street, and those ultimate investors, for more custom capabilities and calculation, and we’re going to be offering a lot more custom indexes to partner with different firms, so they can find exactly what they want for their investment thesis. Whether they want geography or style or some other asset class, we’ll be able to provide that for them. So you’ll see a lot of growth in the custom [indexing]. You’ll continue to see us roll out more exchange traded products. You’ll see more structured products, and you’ll see a richer data set come out from us, both price data and weights and components. We also have recently announced that we’re acquiring eSpeed, which is a fixed income business, so you’ll be seeing a rich data set from fixed income, on-the-run treasuries, and an index family as well. So the next one to two years is going to be a very exciting time for NASDAQ OMX Global Indexes as we continue to fill out our mandate of multi-asset class, a scalable technology solution, create a better value proposition, and the richest, most robust data set in the index business.


Strong Economic Report Strengthens the Tone of Earnings Season Updated: 7/30/2014

This morning, the Bureau of Economic Analysis announced that US GDP increased at an annual rate of 4% in the second quarter. This comes as the NASDAQ-100 companies continue to report earnings, including 24 this week. Comcast and Apple have both reported, and are outperforming the NASDAQ-100 this week. The Index is up 3% since the beginning of the quarter and 10.50% year-to-date.

“The NASDAQ-100 will see nearly 1/4 of member companies announcing earnings this week… the 24 reporting companies represent 12.59% of the Index by weight,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 0.95% since Friday’s close. Year-to-date performance for the index is up 14% after being up above 20% at the end of February. Amgen and Gilead are up 5.58% and 4.33%, respectively, this week.
  • NASDAQ CLEAN EDGE GREEN ENERGY (CELS) was up 1.13% as of noon on Wednesday. Some of the index’s largest holdings include Tesla Motors, Linear Technology and First Solar.
  • PHLX Gold/Silver Sector (XAU) was down 1.53% as of noon on Wednesday. The price of gold is currently $1,293 per ounce, down $10 this week.

INDEX TO WATCH

  • The NASDAQ Technology Dividend Index (NQ96DIVUS) consists of 89 technology and telecommunications securities that pay a regular dividend. Over the last year, the index has produced an annual yield of 3.1%, exceeding the NASDAQ US Technology Index’s 1.6% figure.

Biggest Earnings Week of the Quarter for NASDAQ-100 Companies Updated: 7/23/2014

The Wall Street Journal reported yesterday that inflation was in line with expectations, which quelled apprehension the Fed would soon be forced to raise interest rates. Additionally, Janet Yellen, Fed Chair, recently remarked that interest rates would remain low because we have to “deal with a very real problem, namely the economy is operating significantly short of its potential.” According to economic data though, stocks have broadly surged this year. Today, market reports show that technology and biotech securities gained on upbeat quarterly earnings, exemplified by the 1.5% rise in Apple Inc.’s shares, which beat its forecast.

“This is the biggest week of the quarter for NASDAQ-100 companies announcing earnings, with more than half the Index by weight reporting. Some notable earnings announcements today and tomorrow include Facebook, Amazon, Starbucks, and Baidu,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 3.14% since Friday’s close. Year-to-date performance for the index is up 14% after being up above 20% at the end of February. Biogen is up over 11% this week after beating earnings today.
  • NASDAQ-100 (NDX) was up 0.60% as of noon on Wednesday. Qualcomm, Facebook and Intel all had returns north of 2%, specifically, returns were 3.14%, 3.10% and 2.14%, respectively.
  • PHLX OIL SERVICE SECTOR (OSX) was up 1.33% as of noon on Wednesday. The price of crude oil is $103.13 per barrel, down $3 in the past month.

INDEX TO WATCH

  • The NASDAQ International Multi-Asset Diversified Income Index (NQMAXUS) consists of 126 securities within five asset classes, including: equities, REITs, preferreds, infrastructure and fixed income. Year-to-date, the index has outperformed the NASDAQ Global Ex-US Index while producing an annual yield of close to 5%.

NASDAQ GLOBAL RISK MANAGED INCOME INDEX IS BASIS FOR NEW FIRST TRUST ETF By: Rob Hughes
on 7/23/2014

The NASDAQ Global Risk Managed Income Index is a rules-based, quantitatively enabled index designed to provide risk managed, globally diversified exposure to income-generating asset classes to produce a high yield for the risk taken. The Index consists of liquid, income-bearing exchange-traded funds (ETFs) and other exchange traded products across various asset classes to gain the diversified, risk managed exposure.

The First Trust ETF seeks to replicate, to the extent possible, the performance of the Index net of expenses. The investment strategy of the First Trust ETF is to invest in and hold constituent securities of the Index in the same proportion as they are reflected in the Index or securities intended to replicate the performance of the Index.

“NASDAQ’s suite of Dividend and Income indexes have long been standard benchmarks, and we are proud First Trust has launched a product on one of the most innovative income indexes in the market,” said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. “NASDAQ’s partnership with Newfound Research has resulted in an expansion of income investing from the traditional to the technical.”

“We are pleased to partner with NASDAQ OMX Global Indexes and Newfound on a strategy that we believe provides a compelling income solution for Canadian investors,” said Fraser Howell, chief executive officer of FT Portfolios Canada Co. “In the current low yield environment where many investors and advisors actively hunt for the dual goals of income generation and risk mitigation, we feel our new First Trust ETF (TSX:ETP) may provide the flexibility to potentially achieve both objectives.”

For more information, contact:

Rob Hughes
Vice President, Sales and Business Development
NASDAQ OMX Global Indexes
Direct: +1 212 401 8987
Robert.Hughes@nasdaqomx.com

NASDAQ Global Indexes and Dorsey Wright Partner for International Focus 5 Index By: Rob Hughes
on 7/23/2014

NASDAQ OMX Global Indexes is once again excited to partner with Dorsey Wright & Associates (DWA) to launch the Dorsey Wright International Focus 5 Index. The index comprises five select exchange-traded funds from the First Trust Portfolios product line with powerful relative strength characteristics.

The First Trust Dorsey Wright International Focus 5 ETF (Symbol: IFV), based on the index of the same name, will be listed on The NASDAQ Stock Market® (NASDAQ®) and begin trading on NASDAQ today.

IFV is designed to provide targeted exposure to the five First Trust international ETFs, identified by the (DWA) index methodology, to offer the greatest potential to outperform the other ETFs in the selection universe. First Trust international ETFs provide the universe for the index selection. Using DWA's relative strength ranking system, the ETFs are compared to each other to determine inclusion. The top five ranking ETFs are included in the index and the relative strength analysis is conducted on a weekly basis with ETFs replaced when they fall sufficiently out of favor. The index is rebalanced periodically so each position is equally weighted. The design of the index allows for identification of major themes in the market, exposure to those countries or regions whose price action is superior to others, and elimination of exposure to those countries or regions whose price action is sub-par relative to others.

For more information, contact:


Rob Hughes
Vice President, Sales and Business Development
NASDAQ OMX Global Indexes
Direct: +1 212 401 8987
Robert.Hughes@nasdaqomx.com

PowerShares launches new Canadian ETF with NASDAQ OMX Global Indexes By: Rob Hughes
on 7/21/2014

The appetite for fixed-income investments remains strong among Canadian investors despite a prolonged period of record-low yields. When interest rates eventually rise, many Canadian fixed-income investors may be surprised by the negative effect on their portfolios.

Historically, a laddered bond strategy has helped reduce the risks associated with rising interest rates, but managing a fixed-income portfolio requires expertise.

PowerShares Canada today announced the listing of two new smart beta exchange-traded funds (ETFs) on the Toronto Stock Exchange (TSX) that aim to help investors interested in fixed income strategies.

One of them, the PowerShares LadderRite U.S. 0-5 Year Corporate Bond Index ETF, is based on the new NASDAQ LadderRite 0-5 Year USD Corporate Bond Index . The index is designed to give investors exposure to a laddered basket of U.S.-dollar-denominated, investment-grade corporate bonds. USB has a low management fee of 0.25%. The ticker symbol "USB" represents Canadian-dollar-denominated units, while "USB.U" represents U.S.-dollar-denominated units.

For more information, please contact:

Rob Hughes
Vice President, Sales and Business Development
NASDAQ OMX Global Indexes
Direct: +1 212 401 8987
Robert.Hughes@nasdaqomx.com

J.P. Morgan re-launches ADR.com, offering NASDAQ Global Index data Updated: 7/17/2014

J.P. Morgan, one of the world’s leading depositary receipts (DR) banks, has re-launched ADR.com, an enhanced portal for investors and issuers. ADR.com will better serve Depository Receipt (DR) market participants by providing issuer clients, investors, brokers, and investment advisers the tools to monitor DR trading activity and discover international investment opportunities. It is the first public website to visually illustrate dynamic views of the NASDAQ Global Index Family, alongside other exchange and market data.

Yellen Remarks on Interest Rates to Senate Banking Committee Updated: 7/16/2014

Yesterday Yellen spoke with the Senate Banking Committee and reported slight optimism. At this point, the Fed still has a monthly bond-buying program at $35B. In discussing when and the possibility of raising interest rates, Yellen noted, “There's no formula and there's no mechanical answer that I can give you about when the first rate increase will occur… It will depend on the progress of our economy and how we assess it based on a variety of indicators.”


“Next week will be the heart of earnings announcement season for the NASDAQ-100, with 36 companies representing 52% of the index reporting,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 3.25% since Friday’s close. Year-to-date performance for the index is up 10% after being up above 20% at the end of February.
  • NASDAQ-100 (NDX) was up 0.69% as of noon on Wednesday. Intel beat earnings and is up 8% this week. As well, eight of the other top 10 largest companies have had positive returns with Amazon and Microsoft having positive returns north of 2.5%.
  • PHLX OIL SERVICE SECTOR (OSX) was up 1.23% as of noon on Wednesday. The price of crude oil is $100.91 per barrel, down $6 in the past month.

INDEX TO WATCH

  • The NASDAQ US Multi-Asset Diversified Income Index (NQMAUS) includes five asset classes with the basket including 126 securities. The five asset classes are equities, REITs, preferreds, MLPs and fixed income. Year-to-date, the index has outperformed major US equity benchmarks including the NASDAQ Composite, S&P 500 and Dow Jones Industrial Average.

Video: John Jacobs on the Advantages of Being Part of a Global Exchange Company By: John Jacobs
on 7/15/2014

John Jacobs, Executive Vice President, NASDAQ OMX Global Information Services, explains the advantages of being a part of a global exchange.


Transcript: The fact that NASDAQ Global Indexes is part of the NASDAQ OMX Exchange company gives us some great advantages. For example, since we power 75 markets around the planet, we have natural inroads and connections to those markets that allow us to reach those market participants and they, in turn, are the gateway to the investors. That’s why you’ve seen NASDAQ OMX Indexes, like the NASDAQ-100, for example, start being launched in ETFs and other kinds of products around the planet. We’ve got access to the local marketplace through those connections. In addition, those markets are operating on our trading technology, which is the basis for our index technology. So, again, we have a natural conduit to be able to partner in local markets. The other advantage of being a part of this exchange company is that NASDAQ OMX owns a variety of derivative exchanges, those in Europe and in the US, where we are the number one options market, for example. And when we go to ETF sponsors and other product sponsors, and we can say, “look, if you pick our index, versus another indexers benchmark, we can guarantee you that, if it’s options eligible, we will get an index option launched on your product.” And we’ve all seen that the most successful products out there are the ones that have a variety of different products on them. So you take an index, you launch an ETF and an option, and a future, and structured products, and it appeals to a wide variety of investors and traders. That ensures the most success for all the products. They don’t really compete, they are complementary. So, again, being part of this larger family, gives us great opportunities to leverage the assets of this overall company.


June Monthly Performance Report Updated: 7/10/2014

The PHLX Gold/Silver Sector Index is June's top performer at 18.5% and the OMX Stockholm 30 Index is the worst performer of June at -1.8%. Get a quick overview of NASDAQ OMX Index performance data for our top 50 most watched indexes here.

NASDAQ OMX Global Indexes Now Available Through Informa Investment Solutions Updated: 7/10/2014

NASDAQ OMX announced the following 21 NASDAQ Indexes are now available to clients of Informa Investment Solutions' Zephyr StyleADVISOR. They will also be launched within Informa Investment Solution's PSN Enterprise in the coming months. Eighteen of the indexes are within the NASDAQ Global Index Family, and are comprised of nearly 9,000 global securities with a combined $41.8 Trillion float-adjusted market cap.

The remaining three indexes are from the NASDAQ Dividend Achiever family - a robust series of income-oriented indexes tied to exchange traded products (ETPs) that track nearly $20 billion in assets under management (AUM).

NASDAQ OMX Global Indexes Now Offered Through the StatPro Revolution Platform Updated: 7/9/2014

NASDAQ OMX Global Indexes is partnering with StatPro Group to offer all StatPro Revolution clients access to NASDAQ’s complete suite of more than 40,000 indexes in the NASDAQ Global Index Family.


In an unprecedented move in the index data space, StatPro Revolution’s App Store, which will feature the NASDAQ indexes on a constituent and total level, will allow clients the opportunity to buy benchmark data on a per portfolio basis. This means that smaller asset managers and individual investors now have access to deeper insights at a significantly lower cost.


NASDAQ’s Index Level Performance available in StatPro Revolution can be redistributed by downstream clients in their own reports without the need for a direct license or associated fees. This enables investor communications without incurring additional fees for reporting rights, typically charged by other benchmark providers.


With this partnership, StatPro is one of NASDAQ OMX’s Elite Data Vendors.

Q2 Earnings Announcements Underway Updated: 7/9/2014

Yesterday’s earnings announcement from Alcoa is the first US-listed company to report second quarter earnings and the majority of US-listed companies will do the same over the next month and a half. Major US and global equity indexes were down this week. FOMC minutes are expected to be released today at 2pm EST.

“Over the next four weeks, many of the biggest names in technology from the NASDAQ-100 are expected to announce earnings, kicking-off with Google, Yahoo, eBay and Intel next week,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 4.29% since Friday’s close. Year-to-date performance for the index is up 12% after being up above 20% at the end of February.
  • NASDAQ OMX GLOBAL GOLD & PRECIOUS METALS (QGLD) was up 1.53% as of noon on Wednesday. The price of gold is currently $1,323 per ounce, up $3 this week.
  • NASDAQ INTERNET (QNET) was down 3.85% as of noon on Wednesday. Some of the largest holdings of the index include Amazon, Google, Facebook and Priceline.

INDEX TO WATCH

  • Over the next four weeks, 84 securities in the NASDAQ-100 are expected to announce the most recently quarterly earnings. Eight of the 84 will announce during the week of July 14. The index is down 1.03% this week and up 8.2% year-to-date.

Open Letter to the industry: The Hidden Tax of Index Data Updated: 7/9/2014

By Justin Wheatley, Chief Executive, StatPro Group

This op-ed was originally published in Inside Market Data on July 7, 2014.

As index use has grown, so have the ways in which entrenched index providers are extracting revenues from licensing their indexes and underlying data. But with cost still a key concern, with the popularity of exchange-traded funds growing, and with incumbents facing fresh competition, the industry may be ripe for change, says StatPro group chief executive Justin Wheatley


It is a remarkable phenomenon how much money is spent these days on index data. Indexes started off as a humble measure of roughly how well a stock market was performing. Today, there are millions of indexes available. Fund management companies must buy the licences to use these indexes to measure their performance, and they pay handsomely for this privilege.

Over the years, index providers have generally become more and more aggressive about how their indexes are licenced, seeking out additional licencing fees for every possible usage. Over the 20 years I have worked in the industry, I have rarely heard anyone that was happy about the cost of their index supply. There is a perception that companies are trapped and forced into paying excessive fees for little perceived value-add, despite the best attempts of index providers to demonstrate how unique and useful their particular indexes are.

To a certain extent, it is puzzling how index providers can charge so much. If a supplier of a product keeps raising its price and enjoys significant net margins (over 80 percent, in some cases), you would expect competition to join the fray and drive down prices to a normal and reasonable level—especially if the product is easy to imitate. Well, indexes are indeed very easy to imitate, and competitors have popped up everywhere, sometimes even offering indexes for free. Yet the leading providers of index services have seen no drop in business—in fact, they have grown even faster. So the success of the incumbents has nothing to do with the uniqueness of their products (some rival indexes have a 99.99 percent correlation with the leading index), but rather something else.

The new market for exchange-traded funds (ETFs) has also been a boon for index providers, as would-be sellers of ETFs have launched numerous funds pegged to indexes. Fund management companies pay significant sums for the right to offer such products as the S&P 500 ETF, the FTSE 100 ETF or the MSCI World ETF, as it helps sell their ETFs better, even though they could easily produce an ETF based on a low-cost index.

Brand Management

So it is evident that the index business is not only about the computation of a benchmark, but is also an exercise in brand management. Fund managers make a lot of money managing other people’s investments. Their top priorities are reputation and trust. By using a recognizable brand name as a benchmark index, they can gain and maintain trust with their clients. This brand effect is the real reason why the leading index providers do so well. It is also noteworthy that some providers are strong in equities and others in bonds. Some are well known for a particular market or region, like emerging markets, but none are used for every type of investment, even though many cover everything. Once an index provider is established as the leader in a given niche, it is hard to unseat them, as they have the trust of the market.

Brand name and trustworthiness are important to retail and institutional investors alike. The institutional investors are the guardians of pension funds and insurers deposits, who parcel out their capital to be managed by different fund managers. They are in turn advised by professional consultants whose job it is to keep the fund managers honest. These consultants want to benchmark the fund managers against indexes to ensure that their performance is up to scratch, and this process has contributed to the growth of indexes.

Say a consultant recommends an index to measure the fund manager. The fund manager has no choice but to use this index and then manage their money relative to this benchmark. Once embedded, this index is nearly impossible to replace, and this in turn allows index providers to raise fees without fear of cancellation. As certain index providers become the “leaders,” it takes a brave consultant to recommend a new, cheaper index provider.

The index world is an entrenched business. The fees of index services are initially paid by the fund managers, but they simply pass the fees on to their clients. So in the end, it is pensioners and investors who pay. Indexes have become a hidden tax.

So, despite this unhappy outlook, it is pleasing then when companies try to break the near-index monopoly that exists. Nasdaq OMX has recently launched a big campaign to provide a new class of global equity indexes that are nearly identical to other famous indexes, but at a fraction of the price. Using its technology, Nasdaq has built an index calculator that can easily create thousands of indexes at a much lower cost than their competitors. Nasdaq also has a world-famous brand, and should leverage this to gain market share.

Another is the Freedom Index, an independent, not-for-profit index provider, set up with the express intent of providing free indexes (it does accept donations, however, and StatPro makes a financial contribution to funding the Freedom Index, and also supplies it with data to compute its indexes), and providing a high-minded attempt to make the incumbents more reasonable. While the Freedom Index is tiny and has no brand to speak of yet, its worthy desire to do the right thing should enable it to gain support easily, and brands are best built through reputation, rather than simply marketing.

Both low-cost alternatives like Nasdaq OMX, and free providers like Freedom Index are expanding their coverage, and plan to one day be major providers of index data. Consultants would be advised to take a look and save their clients and pensioners a packet of money while being every bit as good as any other index provider.

Video: John Jacobs on How Index Providers Compete on Price & Value By: John Jacobs
on 7/8/2014

John Jacobs, Executive Vice President, NASDAQ OMX Global Information Services, addresses the Importance of Value and Price in the Index Data Business in the third installment of his video series.


Transcript: I absolutely think indexers will compete more on price in the future. I think the bigger question is less about price and more on value. So as we’ve mentioned before, indexers, modern indexers are moving toward; full-service ones have to be multi-asset class and it has to be a scalable model, not just a technology scalable model, but a scalable model across every facet of what they do. You have to be nimble and lean when it comes to index administration, and operations and when it comes to rolling out your data in a variety of different formats. NASDAQ OMX, as part of the NASDAQ OMX Group, NASDAQ Indexes has always been a very efficiently built organization. Our goal is that the next 10,000 indexes, shouldn’t cost the same as the first 10,000 indexes. So we are continuing to roll out a superior set of indexes with an additional value proposition at the lowest possible cost. And cost matters to all the downstream users of indexes, so we are absolutely committed to being the low cost provider of indexes, data, components and performance to all the users of indexes downstream. So, I think, you’re going to see more and more, as you see in the environment with some of the ETF providers today, looking and switching benchmarks out to find ones that can give them, probably, better cost structures and certainty of the pricing of their products. We are absolutely going to continue to drive to be the low-cost index provider.


Final US GDP Q1 Figures Lower than Expected Updated: 6/25/2014


Today the final US GDP Q1 figure was reported as being down 2.9% as opposed to the predicted 1% slide. The slide in the quarter has been consistently pushed to being a result of the cold weather. Equity markets had mixed reactions to the announcement with some markets being up, some flat and others down.

“While broad US Equity markets continue to touch or be around all-time highs, it’s interesting to see the results of the final US GDP Q1 figure being almost 2% below prior estimates,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 0.05% since Friday’s close. Year-to-date performance for the index is up 13% after being up above 20% at the end of February.
  • PHLX GOLD/SILVER SECTOR (XAU) was up 0.27% as of noon on Wednesday. The price of gold is currently $1,323 per ounce, up $7 this week.
  • NASDAQ INTERNET (QNET) was up 1.06% as of noon on Wednesday. Some of the largest holdings of the index include Amazon, Google, Facebook and Priceline.

INDEX TO WATCH

  • Track the global equity space by monitoring the NASDAQ Global Index (NQGI). The quarterly evaluation for the month of June became effective after the close of trading on June 20, 2014. The index is down 0.61% this week and up 4.56% year-to-date.

NASDAQ OMX Launches REIT Benchmark Index Family Updated: 6/25/2014

NASDAQ OMX Global Indexes has partnered with ETRE Financial to create The NASDAQ ETRE REIT Index family, a unique way to provide smart-beta exposure to the U.S. real estate market through the usage of Real Estate Investment Trust (REIT) security types. The Indexes include five REIT sector specific Indexes plus a composite index.

The 12 new indexes available today are:

Index: Symbol

NASDAQ ETRE Composite REIT Index: NQETRE
NASDAQ ETRE Composite REIT Total Return Index: NQETRET
NASDAQ ETRE Healthcare REIT Index: NQETHC
NASDAQ ETRE Healthcare REIT Total Return Index: NQETHCT
NASDAQ ETRE Hospitality REIT Index: NQETH
NASDAQ ETRE Hospitality REIT Total Return Index: NQETHT
NASDAQ ETRE Office REIT Index: NQETO
NASDAQ ETRE Office REIT Total Return Index: NQETOT
NASDAQ ETRE Residential REIT Index: NQETRR
NASDAQ ETRE Residential REIT Total Return Index: NQETRRT
NASDAQ ETRE Retail REIT Index: NQETR
NASDAQ ETRE Retail REIT Total Return Index: NQETRT

The indexes use ETRE Financial’s proprietary Enterprise Value (EV) methodology to weight components based on the total value of the underlying properties of the REIT, rather than the traditional market cap equity value of the component. This improved approach to tracking real estate valuations is designed to bring a higher level of understanding to the tracking, trading, investing, and benchmarking of exchange-traded real estate. The unique NASDAQ ETRE REIT Indexes methodology allows investors to take advantage of changes and velocity of market cycles.

Click here for NASDAQ ETRE REIT Indexes Methodology.

Video: John Jacobs on The Importance of Scalable Technology By: John Jacobs
on 6/24/2014

John Jacobs, Executive Vice President, NASDAQ OMX Global Information Services, addresses the Importance of Scalable Technology in the second installment of his video series.


Transcript: To be a full service index calculator, and the world is moving to a smaller number of much larger full-service index calculators or indexers, you need a robust calculator. This business is moving to a model that’s built on scale, a technology scale. That is a strong spot of the NASDAQ OMX Group and we built the most scalable technology to trade securities around the planet. Now I say securities specifically, not just stocks, because we power a variety of different kinds of markets. So when it comes to an index calculation, you need to be able to calculate a variety of indexes across multiple asset classes; Not just equities, but commodities, you need to be able to do currencies, you need to be able to do fixed income and a variety of other things. It needs to be fast, it needs to be able to take in multiple data inputs, and it needs to be able to deliver that in a very robust data center that can be consumed by investors a lot of different ways. You can’t build that with a very expensive cost structure, it won’t be competitive. So that is the importance of having a technologically scalable index calculator at the core of your index business and we are very excited that we have built what we consider the absolute state-of-the-art best one on the planet.


Video: John Jacobs on Growth in the Dividend & Income Index Business By: John Jacobs
on 6/18/2014

John Jacobs, Executive Vice President, NASDAQ OMX Global Information Services, addresses the growth of Dividend & Income Index Strategies in the first installment of his video series.



Transcript: Since 2007, 2008, since the financial crisis, it’s been very difficult for institutional and individual investors to find yield. So dividend investing has a lot of advantages because it guarantees investors a yield on their portfolio instead of just relying on the performance of the stock, or the underlying stocks in the ETF. So with the acquisition of the Dividend Achievers suite of products, we can marry that with our income family of products and offer investors a suite of different indexes to use. The indexes are a basis for a variety of ETFs and other types of products and it’s another stepping stone for NASDAQ as we continue to build out our Global Index business, which has become multi-asset class and, as well, multi-different investment style.


Fed Has Continued its Decrease in Bond Buying Updated: 6/18/2014

The Fed wrapped up its two-day meeting today. The outcome resulted in another $10B decrease of its bond buying program, to $35B. Today, US Equity markets were flat in anticipation of this announcement. In addition, it is estimated that interest rates will continue to be low, unless inflationary pressures cause the Fed to act.

“The Fed has continued to decrease its bond buying program by $10B. Note that interest rates will most likely remain low despite the recent increase in the CPI, with year-over-year figures pointing north of 2%,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 0.04% since Friday’s close. Year-to-date performance for the index is up 9% after being up above 20% at the end of February.
  • PHLX GOLD/SILVER SECTOR (XAU) was up 1.41% as of noon on Wednesday. The price of gold is currently $1,272 per ounce, down $2 this week.
  • PHLX OIL SERVICE SECTOR (OSX) was up 0.03% as of noon on Wednesday. The price of oil is currently $106 per barrel, down $1 this week.

INDEX TO WATCH

  • Track the global equity space by monitoring the NASDAQ Global Index (NQGI). The quarterly evaluation for the month of June becomes effective after the close of trading on the 3rd Friday each June (this year, June 20, 2014). The index is up 0.15% this week and up 4.27% year-to-date.

NASDAQ® Global Indexes Now FREE to Interactive Data’s BondEdge® Clients Through August Updated: 6/16/2014

 

NASDAQ OMX has added BondEdge Solutions, an Interactive Data company and provider of high-quality cross-asset portfolio management and risk analytics solutions, to the NASDAQ Elite Index Data Partner Program. BondEdge will distribute the NASDAQ Global Index Family value data to its customers, immediately upon distribution from NASDAQ OMX. As part of the index launch, Bondedge is providing their clients with free access to NASDAQ’s suite of Global Equity Indexes through August 2014 to help them evaluate the offering.


The NASDAQ Global Index Family covers international securities segmented by geography, sector, and size. NASDAQ OMX’s transparent and rules-based selection method results in a complete representation of the global investable equity marketplace. The indexes cover 45 individual countries within developed and emerging markets, and facilitate a multitude of tracking, trading, and investing opportunities.


For more information about BondEdge, please visit www.bondedge.com.

OPEC to Maintain Quota Updated: 6/11/2014

OPEC is set to maintain its output quota, despite turmoil among OPEC members, as well as adequate oil global supplies. OPEC is currently holding its annual meeting in Vienna, Austria.

“OPEC has opted to maintain its 30 million barrel a day quota. This supply quota has not seemed to disrupt or impact oil prices,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 1.65% since Friday’s close. Year-to-date performance for the index is up 10% after being up above 20% at the end of February.
  • PHLX GOLD/SILVER SECTOR (XAU) was up 3.52% as of noon on Wednesday. The price of gold is currently $1,261 per ounce, up $9 this week.
  • PHLX OIL SERVICE SECTOR (OSX) was down 0.33% as of noon on Wednesday. The price of oil is currently $105 per barrel, up $2 this week.

INDEX TO WATCH

  • Buybacks have been a hot topic, as they offer another means of shareholder returns outside of dividends. Track the international buyback space by monitoring the NASDAQ International BuyBack Achievers Index (DRBXUS). The index conducts its annual evaluation, which becomes effective after the close of trading on the last trading day in July. The index is down 0.09% this week but up 5.60% year-to-date.

US Equity Markets Are Up Along with Employment Updated: 6/4/2014

Broad US equity markets are at all-time highs. Employment figures reported by ADP point to 179,000 jobs being added in May. This Friday, the US Department of Labor will release its jobs report for the month of May. According to some, with the addition of these new jobs, the US has now recovered all jobs lost during the financial crisis.

“US jobs reports are continuing to give healthy figures from ADP and we anticipate the same from the US Department of Labor this Friday. It should not come as a shock that the US equity markets have continued to touch all-time highs in conjunction with this news,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 1.32% since Friday’s close. Year-to-date performance for the index is up 7% after being up above 20% at the end of February.
  • PHLX GOLD/SILVER SECTOR (XAU) was up 0.54% as of noon on Wednesday. The price of gold is currently $1,244 per ounce, flat this week.
  • PHLX SEMICONDUCTOR (SOX) was up 1.76% as of noon on Wednesday. Year-to-date performance for the index is up 14% with cumulative returns being positive since the middle of February.

INDEX TO WATCH

  • Buybacks have been a hot topic, as they offer another means of shareholder returns outside of dividends. Track the international buyback space by monitoring the NASDAQ International BuyBack Achievers Index (DRBXUS). The index conducts its annual evaluation, which becomes effective after the close of trading on the last trading day in July. The index is up 0.69% this week and 4.66% year-to-date.

May Monthly Performance Report Updated: 6/3/2014

The NASDAQ OMX Wind Index is May's top performer at 14% and the PHLX Gold/Silver Sector Index is the worst performer of May at -7.8%. Get a quick overview of NASDAQ OMX Index performance data for our top 50 most watched indexes here.

Housing Figures Point Higher; Still Lower Than 2013 Updated: 5/28/2014


Last week the National Association of Realtors posted April statistics on sales of previously owned homes as well as new single-family home sales. While both were higher than the previous month, both were down year-over-year.


“While housing sales figures are being reported as lower than last year at this time, it’s interesting to see how the mortgage rates have changed since the Fed’s announcement of its bond buying program. 30-Year fixed mortgage rates are currently above 4.1%, up from 3.6% this time last year,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 2.60% since Friday’s close. Year-to-date performance for the index is up 6% after being up above 20% at the end of February.
  • PHLX GOLD/SILVER SECTOR (XAU) was down 5.50% as of noon on Wednesday. The price of gold is currently $1,258 per ounce, down $34 this week.
  • PHLX OIL SERVICE SECTOR (OSX) was up 0.14% as of noon on Wednesday. The price per barrel of crude is currently $103.70, down $1 this week.

INDEX TO WATCH

  • The internet space has been heating up of late with returns close to 10% during the past three weeks. Track the space by monitoring NASDAQ Internet (QNET). The index is up 0.89% this week.

Watch the Web Seminar Replay: Using Target Maturity Bond Funds to Create Retirement Income Solutions Updated: 5/23/2014


Watch the web seminar replay on alternatives to individual bonds or broad bond funds.

Matthew J. Patterson, Managing Director, Accretive Asset Management, and Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes introduce the concept of the target maturity bond funds, compare and contrast these new products to both individual bonds and traditional bond funds, and describe how investors and advisors can use target maturity bond funds to create investment solutions for both the asset accumulation and distribution phases of an investor’s life.

WATCH THE REPLAY NOW

Fed Chief Testimony Points to Continued Low Interest Rates Updated: 5/7/2014

 

Fed Reserve Chief Janet Yellen gave testimony to the Joint Economic Committee today, saying, “a high degree of monetary accommodation remains warranted.” She also remarked that higher unemployment rates are “far from satisfactory” and “elevated.” “The monthly Fed bond buying program was reduced by $10B to $45B last week, keeping it on track to end the program later this year. However, this week’s comments from the Fed indicate there is no plan to increase interest rates after the buying ends,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is down -1.34% since Friday’s close. Year-to-date performance for the index is flat after being up above 20% at the end of February.
  • PHLX GOLD/SILVER SECTOR (XAU) was down -2.73% as of noon on Wednesday. The price of gold is currently $1,292 per ounce, down $10 this week.
  • PHLX OIL SERVICE SECTOR (OSX) was up 0.68% as of noon on Wednesday. The price per barrel of crude is currently $100.82, up $1 this week.

INDEX TO WATCH

  • The price of Kansas Wheat futures has grown 39% since the end of January rising to $8.35. Track the space by monitoring the NASDAQ Commodity Kansas Wheat Index ER (NQCIKWER). The index is up 2.9% this week.

 

April Monthly Performance Report Updated: 5/1/2014

The NASDAQ OMX Commodity Natural Gas ER Index is April's top performer at 9.4% and the NASDAQ OMX Solar Index is the worst performer of April at -8.1%. Get a quick overview of the NASDAQ OMX Index performance data for our top 50 most watched indexes here.

Fed Bond Buying Decrease Expected To Continue Updated: 4/30/2014

Leading up to the result of the Fed’s two-day meeting today, US equity markets have been flat. First quarter US GDP growth figures were reported by the Bureau of Economic Analysis at 0.1%. In addition, the ADP National Employment Report for April shows 220,000 new workers were added to the domestic private labor market. “The monthly Fed bond buying program is expected to be reduced by $10B to $45B at the conclusion of today’s Federal Reserve meeting. The 0.1% first quarter US GDP growth figure was lower than analyst expectations, in part due to the unusually cold winter,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 1.41% since Friday’s close. Year-to-date performance for the index is up 0.26% after being up north of 20% at the end of February.
  • PHLX GOLD/SILVER SECTOR (XAU) was down 0.72% as of noon on Wednesday. The price of gold is currently $1,293 per ounce, down $7 this week.
  • NASDAQ CLEAN EDGE GREEN ENERGY (CELS) is down 3.18% this week. Linear Technology, First Solar, Tesla Motors, Cree and SolarCity are the five largest holdings in the index.

INDEX TO WATCH

  • The price of Kansas Wheat futures has grown 34% since the end of January rising to $8.07. Track the space by monitoring the NASDAQ Commodity Kansas Wheat Index ER (NQCIKWER). The index is up 3.0% this week.

 

US Markets Rally; GDP and Employment Reports to come next week Updated: 4/23/2014

US equity markets have rallied during the last two weeks, to levels unseen since the beginning of April. First quarter US GDP and ADP employment reports are scheduled to be released next week. US GDP figures are expected to be between 1% and 1.5%.

“US equity markets have rebounded over the last two weeks heading into earnings for some of the biggest companies listed on NASDAQ including Apple, Facebook, Amazon, among others,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) was up 4.66% since Thursday’s close. Year-to-date performance for the index is up 2% after being up north of 20% at the end of February.
  • PHLX GOLD/SILVER SECTOR (XAU) was up 2.54% as of noon on Wednesday. The price of gold is currently $1,283 per ounce, down $10 this week.
  • NASDAQ-100 (NDX) was up 1.03% this week. 32 companies from the index are reporting earnings this week. Apple, Facebook and Qualcomm, among others, report today. 14 of the 32 are reporting tomorrow.

INDEX TO WATCH

  • The price of coffee futures has exploded since the end of January rising to over $215 increasing from $120. Track the space by monitoring the NASDAQ Commodity Coffee Index ER (NQCIKCER). The index is up 4.6% this week and 87% year-to-date.

 

Can Alternative Index Providers Disrupt Index Inertia? Updated: 4/16/2014

The following article was written by Faye Kilburn and published in Inside Market Data on April 7, 2014.

Though there are almost a hundred mainstream index providers in the industry today, the market remains dominated by a small and elite group of providers—MSCI, S&P Dow Jones Indices, Russell Indexes and FTSE Group. With the industry clamoring for change and innovation, Faye Kilburn examines the barriers to greater adoption of alternative providers. The fees charged by index providers have risen sharply over recent years, partly due to the increase in complexity of indexes for benchmarking, and partly due to the rise of exchange-traded funds. These hikes, combined with the proliferation of new license types covering areas such as non-display usage, have led many firms to question whether the current cost of indexes is at all reflective of their value.

Read the entire article here

 

Greece Issues First Bonds Since 2010 Updated: 4/9/2014

Greek long-term bonds are being issued for the first time since its bailout in 2010 with the sale expected to be finalized Thursday. Estimates put the value of the 5-year bonds at a minimum of €500M. US and global equity markets remain flat this week with negative returns in the 40 basis point range.

“Greece’s issuance of its first long-term bonds since its bailout is a big step for the country and may be a sign the country’s economy is turning a corner,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) was up 2.53% since Friday’s close. Year-to-date performance for the index is up 2% after being up north of 20% at the end of February.
  • PHLX GOLD/SILVER SECTOR (XAU) was up 1.26% as of noon on Wednesday, from the most recent Friday close. The price of gold is currently $1,305 per ounce, up $2 this week.
  • NASDAQ INTERNET (QNET) was up 1.74% this week. eBay, Amazon, Priceline, Facebook and Google are the five biggest holdings in the index.

INDEX TO WATCH

  • The price of coffee futures has exploded since the end of January, increasing from $120 to $192 today. Track the space by monitoring the NASDAQ Commodity Coffee Index ER (NQCIKCER). The index is up 6% this week and 75% year-to-date.

 

March Monthly Performance Report Updated: 4/3/2014

The NASDAQ OMX Axioma Equity-Commodity Oil Index is March's top performer at 4.6% and the NASDAQ Biotechnology Index is the worst performer of March at -10.7%. Get a quick overview of NASDAQ OMX Index performance data for our top 50 most watched indexes here.

NASDAQ OMX and Chaikin Analytics launch three NASDAQ Chaikin Power Indexes Updated: 4/3/2014

NASDAQ OMX and Chaikin Analytics, LLC announced the launch of three NASDAQ Chaikin Power Indexes today: the NASDAQ Chaikin Power US Large Cap Index (NQULCHK), the NASDAQ Chaikin Power US Small Cap Index (NQUSCHK), and the NASDAQ Chaikin Power US Dividend Achievers Index (NQDACHK). These new indexes are rules-based, quantitatively enabled investment strategies designed to outperform their peers and the market based on the Chaikin Power Gauge, a multi-factor quantitative model.

Referred to as enhanced alpha indexes, the NASDAQ Chaikin Power Indexes filter the NASDAQ US 300 Index, NASDAQ US 1500 Index and NASDAQ US Broad Dividend Achievers Index. The NASDAQ Chaikin Power Indexes are available to fund managers, advisors and investors for licensing and implementation through separately managed accounts and ETFs.

Read more here

 

NASDAQ Composite: How Today's 4000 is Different from 1999 Updated: 4/2/2014

To watch a replay of our NASDAQ Composite Web Seminar: A 14-Year Retrospective, please click here.

In the final days of 1999, the NASDAQ Composite (COMP) index reached the 4000 milestone for the first time since its creation in 1971. What, in retrospect, became known as the "tech" or "dot-com" mania was well underway. By early March 2000, the composite would reach an all-time peak of 5049, after which it began its precipitous decline. Now, some 14 years later, the NASDAQ Composite has climbed above the 4000 mark again. But in the intervening years, the index composition and valuation have experienced dramatic changes in many large and subtle ways.

Read more about the changes in the NASDAQ Composite components, valuations and weightings since the burst of the tech bubble 14 years ago. Submit the form below to receive your complimentary copy of the NASDAQ Composite Whitepaper now:

US Jobs Growth in March; Equity Markets Rebound Updated: 4/2/2014

The ADP National Employment Report for March shows 191,000 new workers were added to the domestic private labor market. Following the positive jobs report, global equity markets responded in a big way, with returns north of 1.5% this week. “Following the positive jobs report from ADP for the month of March, global and US equity markets are up between 1.5% and 2% this week heading into the beginning of the second quarter,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) was up 4.99% since Friday’s close. Year-to-date performance for the index is up 6.3%.
  • PHLX GOLD/SILVER SECTOR (XAU) was flat 0.33% as of noon on Wednesday, from the most recent Friday close. The price of gold is currently $1,292 per ounce, down $2 this week.
  • NASDAQ CLEAN EDGE GREEN ENERGY (CELS) was up 4.56% this week. Tesla, one of the core holdings of the index, has been in the news quite a bit this week with the announcement of a $5B battery factory set to be built in four states.

INDEX TO WATCH

  • The price of natural gas has bounced around since early November 2013, starting under $3.60 and rising to $4.34 today. Track the space by monitoring the NASDAQ Commodity Natural Gas Index ER (NQCINGER). The index is down 3% this week but up 15% year-to-date.

 

NASDAQ Global Index Family Now Available Through RIMES Benchmark Data Service Updated: 3/27/2014

The NASDAQ Global Index Family, comprised of nearly 9,000 global securities with a combined $41.8 trillion float-adjusted market capitalization, is now available on the award-winning RIMES Benchmark Data Service® (RIMES BDS®).

This offering expands upon the following NASDAQ indexes previously available on RIMES:

RIMES Technologies Corporation was the first provider to become a NASDAQ OMX Elite Index Data Partner

“Furthering our partnership with RIMES provides their clients access to NASDAQ OMX’s full range of global equity indexes to benchmark their portfolios; responding to client demand for competing benchmark options,” said Oliver Albers, VP of Sales for Global Data Products, NASDAQ OMX.

RIMES Benchmark Data Service formats NASDAQ Index Data according to clients’ specific criteria, then delivers it through files customized to fit each client’s systems, ready to be used within their applications. RIMES BDS is fully managed data service that covers all the elements of good data processing.

“The data from NASDAQ OMX Global Indexes furthers our commitment to providing the full suite of data for all NASDAQ OMX indexes, customized to our client’s exact specifications,” said Alessandro Ferrari, SVP Global Marketing, RIMES. “These additional indexes improve clients’ access to NASDAQ Indexes and supplement their existing choice of indexes.”

Learn more about NASDAQ OMX Elite Data Index Partners.

 

Broad Equity Markets are flat this week leading into quarter-end Updated: 3/26/2014

The ups and downs of the global equity markets during the first quarter of 2013 have been for naught, as they are currently flat. Technology M&A activity is worth noting, as Facebook’s purchase of Oculus follows their WhatsApp deal from last month. In addition, Apple is in talks with Comcast on a set-top box streaming service.

“Global equity markets are up 67 basis points this week with year-to-date returns slightly positive at 0.11%. This year-to-date figure comes despite some early volatility this year which resulted in returns down more than 5% through the first week of February,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) was down 2.95% since Friday’s close. Year-to-date performance for the index is up 5.3% after the recent downward trend.
  • PHLX GOLD/SILVER SECTOR (XAU) was down 5.91% as of noon on Wednesday, from the most recent Friday close. The price of gold is currently $1,307 per ounce, down around $30 this week.
  • NASDAQ International BuyBack Achievers Index (DRBXUS) was up 1.7% this week with overall year-to-date returns being down 0.50%.

INDEX TO WATCH

 

  • The price of silver has bounced around quite a bit in the last year, starting at just under $29 per ounce, to $19 at the end of January, bouncing back up to $22, then ultimately dropping to under $20 today. Track the space by monitoring the NASDAQ Commodity Silver Index ER (NQCISIER) and the covered call Credit Suisse NASDAQ Silver FLOWS 106 Index Ttl Rt (QSLVOTR).

 

This Isn’t the Same NASDAQ Composite Index of Old Updated: 3/21/2014

The NASDAQ Composite Index – known simply as “The NASDAQ” – has crossed over 4000 again, a level last achieved 14 years ago. This time, the index composition and valuation look quite different than they did back in 1999. Since then, the Index has experienced dramatic changes reflecting market trends that are specific to NASDAQ as well as the broader economy and capital markets.

David Krein, NASDAQ OMX Global Indexes Head of Research, and Jeffrey Smith, Managing Director, NASDAQ OMX Economic Research, have written a white paper on the NASDAQ Composite “A 14-year Retrospective,” which delves into one of the world’s most-watched benchmarks.
David also will be hosting a complementary Web Seminar that will showcase the white paper findings and provide an opportunity to hear from the authors and ask questions.

The web seminar will cover the growth and change of the index’s components, composition and valuation. Learn more about:

  • The number of components now versus 14 years ago and the differences between the securities’ size and valuation.
  • How and why the components have shifted
  • The extent of the index’s technology orientation
  • How this 4000 is much different than that of 1999

Join us for a complimentary web seminar on the NASDAQ Composite Index: A 14-Year Retrospective
Wednesday, April 2nd
10:00 – 11:00 a.m., ET

Register now

Submit real-time questions during the web seminar or Tweet your questions in advance to @NASDAQIndexes using #NASDAQComp.

White Paper available for download here on April 2nd.

 

 

Fed Chairman Janet Yellen's First FOMC Meeting Ends Today Updated: 3/19/2014

Many expect Fed Chair Janet Yellen’s first move will be to continue the tapering schedule set forth by former Chairman Ben Bernanke. Bond buying should decrease from $65B to $55B per month. Differing from her predecessor, unemployment rates might not be used as the benchmark in determining where the economy’s growth stands. The February unemployment rate came out at 6.6% (0.1% above the Fed threshold for increasing interest rates). Many believe unemployment figures do not give an accurate depiction of the labor markets, and often note that many individuals have left the workforce, rather than continue to claim unemployment. “Equity markets have been very strong so far this week leading up to the results of new Fed Chairman Janet Yellen’s first meeting, which is expected to include the continued easing of the bond buying program,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) was up this week with a 3.03% return since Friday’s close. Year-to-date performance for the index is up 15%.
  • PHLX GOLD/SILVER SECTOR (XAU) was down 5.43% as of noon on Wednesday from the most recent Friday close. The price of gold is currently $1,338 per ounce, down over $40 this week.
  •  NASDAQ US Buyback Achievers Index (DRB) was up 1.5% this week with a return just south of 9% since the beginning of February, making it one of the highest performing US equity indexes over that timeframe.

INDEX TO WATCH

  • Solar energy has consistently been reaping in great returns with year-to-date and current week performances being 30% and 6%, respectively. Look for activity in the space by tracking NASDAQ OMX Solar (GRNSOLAR).

 

Fannie Mae and Freddie Mac: Returning to Profitability Updated: 3/12/2014

Fannie Mae and Freddie Mac have returned to profitability. In 2008, the two combined mortgage lenders received $187B in TARP funds. What is not as well known, by the end of March 2014, they will have paid around $200B in dividends back to the US Treasury, far exceeding the amount the government supplied the agencies to stay afloat. US Equity markets have been choppy this week and are currently down around 1%. “Fannie Mae and Freddie Mac’s rise to profitability and subsequent payment of dividends in excess of $200B is partially due to home prices coming back into favor, along with a 2012 bailout amendment by the US government. The amendment requires both agencies pay a majority of their profits as dividends to the US treasury,” said David Krein, Head of Research, NASDAQ OMX Global Indexes.


INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) was flat this week with a 0.47% return since Friday’s close. Year-to-date performance for the index is up 15%.
  • PHLX GOLD/SILVER SECTOR (XAU) was up 0.95% as of noon on Wednesday from the most recent Friday close. The price of gold is currently $1365 per ounce, up over $100 from the end of January.
  • NASDAQ INTERNET (QNET) was down this week with a return of -2.06%. Some core holdings include Facebook, eBay, Google, Priceline and Amazon.

INDEX TO WATCH

  • With the recent political issues in Russia, look for activity in their markets by tracking the NASDAQ Russia Index (NQRU), which is down 29% year-over-year, after dropping 15% in the last two weeks.

 

NASDAQ OMX Outlines Google Corporate Action Index Changes Updated: 3/11/2014

On January 30th, Google, Inc. (NASDAQ:GOOG) announced that its Board of Directors approved the distribution of Class C shares as a dividend to stockholders. The Google Board of Directors has approved a distribution of shares of the Class C capital stock as a dividend to stockholders with a dividend record date of March 27, 2014 and a dividend payment date of April 2, 2014. As a result of this complex corporate action, this change will impact NASDAQ OMX® Indexes that include Google Class A Shares including NASDAQ OMX Global Index Data Service (GIDS 2.0), NASDAQ Global Index Watch (GIW), and all markets.  Upon distribution, the Google Class C shares will be added to all NASDAQ OMX Indexes that contain Google Class A shares including, but not limited to, the NASDAQ-100 Index®, the NASDAQ Internet Index® and the NASDAQ OMX Global Index Family, effective prior to market open on the April 3, 2014, the ex-date of the distribution. Both classes of shares will remain temporarily in the Indexes until the next quarterly rebalancing on June 23rd, when the Class A shares will be removed from the Indexes.

Please visit the Global Index Watch website for a complete list of affected indexes and refer to the Frequently Asked Questions document for more details.

Where can I find additional information?

·         For questions about NASDAQ OMX index products, please contact NASDAQ OMX Global Indexes at +1 301 978 8284.

·         Refer to the NASDAQ OMX press release.

·         Refer to the FAQ document.

NASDAQ OMX Global Indexes Now Available Through eVestment Updated: 3/6/2014

The NASDAQ OMX Group, Inc., a market leading provider of innovative, transparent indexes, announced the following 19 NASDAQ Indexes are now available to clients of eVestment’s suite of Analytic solutions for institutional investors:

NASDAQ Global Index Family: Comprised of nearly 9,000 global securities with a combined $41.8 Trillion float-adjusted market cap.

• NASDAQ Developed Ex North America Index
• NASDAQ Developed Ex North America Large Mid Cap Index
• NASDAQ Developed Market Index
• NASDAQ Developed Large Mid Cap Index
• NASDAQ Developed Small Cap Index
• NASDAQ Emerging Markets Index
• NASDAQ Emerging Large Mid Cap Index
• NASDAQ Emerging Small Cap Index
• NASDAQ Global Ex US Index
• NASDAQ Global Index
• NASDAQ Global Large Mid Cap Index
• NASDAQ Global Small Cap Index
• NASDAQ US Large Cap Index
• NASDAQ US Mid Cap Index
• NASDAQ US Small Cap Index
• NASDAQ US Benchmark Index

NASDAQ Dividend Achiever Indexes: exchange traded products (ETPs) tracking nearly $20 billion in assets under management (AUM)

• NASDAQ US Dividend Achievers Select Index
• NASDAQ US Broad Dividend Achievers Index
• NASDAQ Dividend International Achievers Index

“Partnering with eVestment to provide NASDAQ OMX Global Index data on all eVestment software platforms is an exciting opportunity for both companies and provides additional value to eVestment clients.” said Rob Hughes, Vice President of Sales and Business Development, NASDAQ OMX Global Indexes. “As a result, NASDAQ OMX Global Index products will gain access to one of the largest distribution channels to the global institutional investment community, and eVestment clients will have access to NASDAQ OMX’s innovative indexes to benchmark their portfolios, globally and dynamically.”


eVestment is a global leader in institutional investor data and analytics, delivering insight and intelligence to the institutional investing community through a comprehensive, global database and cloud-based analytics technology As institutional portfolios increasingly diversify holdings, eVestment’s ability to act as a single source for data, analysis and reporting has served as a valuable resource for efficient investing.

“The data from NASDAQ OMX Global Indexes complements our extensive database of traditional and alternative vehicles,” states Jim Minnick, Founder and CEO of eVestment. “The agreement allows users of any eVestment Analytics solution to consume the same data.”

 

NASDAQ OMX Will Modify the Maintenance Window for GIDS 2.0 Updated: 2/28/2014

Earlier this year, NASDAQ OMX extended the hours of operation for the Global Index Data Service (GIDS) data feed to support the dissemination of ticks during the Asia/Pacific market hours. Currently, GIDS observes a maintenance window from 23:35, Eastern Time (ET) to 00:05, EST. During this time data is not disseminated.

Effective Sunday, March 9, 2014, the new GIDS maintenance window will occur from 18:40, ET to 19:10, ET. Please Note: There are no message format changes to the GIDS data feed.

Please refer to the Data Technical News Alert sent earlier this year for full details.

For questions regarding the GIDS data feed, please contact NASDAQ OMX Global Indexes at +1 301 978 8284.

NASDAQ OMX Global Indexes is named the Most Innovative Index Provider of the Year by ETFExpress By: John Jacobs
on 2/27/2014

NASDAQ OMX Global Indexes has been named the Most Innovative Index Provider of the Year by the 2014 ETFExpress Global Awards. The award was presented in late February at the ETFExpress Global Awards gala in London. NASDAQ OMX Global Indexes gained the largest amount of votes in an online poll to win the title. Among the reasons for their win:

NASDAQ OMX is one of the only index providers to have products listed globally covering equities, commodities, and fixed income.

As of 2013 year-end, NASDAQ had 148 licensed ETPs globally with approximately $92.3 billion in assets under management. The ETPs based on NASDAQ indexes are listed in 16 countries, and NASDAQ OMX is the first index provider to have its indexes linked to ETPs in China, India, and Iceland.

In October 2013, NASDAQ OMX launched the NASDAQ US Rising Dividend Achievers Index, a continuation of the Dividend Achievers brand. The index was designed to include stocks that are best positioned to continue dividend increases, and the methodology includes both several dividend criteria and balance sheet criteria. The largest dividend ETF with just under $20B in assets under management tracks the NASDAQ US Dividend Achievers Select Index.

Another innovative move took place in 2013, when NASDAQ OMX partnered with Accretive Asset Management to co-brand and grow BulletShares, the first fixed-maturity corporate bond indexes; since then, assets have grown in BulletShares ETFs substantially and the NASDAQ BulletShares Ladder indexes were launched.

 

Equity Markets Rally on Housing Data and Strong Earnings Results Updated: 2/26/2014

Despite some negative economic reports in previous weeks, the US equity markets continued to rally, as new home sales data released today beat analyst forecasts. The recent surge in the markets has caused the NASDAQ Composite Index to touch a 13-year high. In addition, the price of gold has remained stable at $1,325 an ounce despite recent fluctuations in currencies and negative reports over the past few days about cyber-attacks on the virtual currency bitcoin, resulting in a huge drop-off in value. Precious metals stocks, on the other hand, were among the biggest decliners.
“With new home sales beating forecasts and strong earnings results, the U.S. equity market has largely retraced its January losses,” said David Krein, Managing Director of NASDAQ OMX Global Indexes. “Among industry sectors, the NASDAQ Clean Edge Green Energy Index was the biggest mover this week, up 5.44%, bolstered by a huge spike in shares of Tesla.”

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) was up 1.54% since Friday’s close as of noon on Wednesday of this week. Year-to-date, the index is up 20%.
  • PHLX GOLD/SILVER SECTOR (XAU) was down 3.18% from the most recent Friday close. The price of oil is currently $102 per barrel, up around $6 from the end of January.
  • NASDAQ CLEAN EDGE GREEN ENERGY (CELS) and NASDAQ OMX GLOBAL AUTOMOBILE (QAUTO) both have TESLA as a core holding. Both indexes are up this week with returns of 5.44% and 0.73%, respectively.

INDEX TO WATCH

  • Some negative earnings releases have come out over the last couple of weeks in the solar space. Look for activity in this sector by tracking NASDAQ OMX Solar (GRNSOLAR), which is up a whopping 110% year-over-year.

NASDAQ BuyBack Achievers Index is the basis of a New Invesco PowerShares ETF By: Rob Hughes
on 2/26/2014

We are excited to announce that Invesco PowerShares launched the Invesco PowerShares International BuyBack Achievers Portfolio (IPKW) exchange traded fund (ETF) on The NASDAQ Stock Market, providing investors efficient access to a portfolio of global companies classified as International BuyBack Achievers.

The ETF is based on the NASDAQ International BuyBack Achievers Index, which comprises international securities, excluding the United States, issued by corporations that have repurchased at least of 5% or more of outstanding shares in the trailing 12 months.
"Our U.S.-focused flagship fund, the PowerShares BuyBack Achievers Portfolio (PKW), has achieved a competitive long-term track record demonstrating the investment merit of the BuyBack Achievers methodology, and more broadly of smart beta," says Lorraine Wang, Invesco PowerShares global head of ETF products and research. "The PowerShares International BuyBack Achievers Portfolio (IPKW) expands the range of tools investors can use to efficiently allocate the BuyBack Achievers strategy across the globe."

The NASDAQ International BuyBack Achievers Index is the latest index in NASDAQ OMX’s popular Dividend AchieversTM index family. The NASDAQ Dividend Achievers are an objective composite of companies with a history of increasing dividend payouts. This select group of companies is committed to enhancing shareholder value through the return of capital to shareholders.

 

Interested In Investing In Technology Stocks? By: John Jacobs
on 2/24/2014

 

Technology companies have always been classified as growth machines, aggressively reinvesting profits and thereby sowing the seeds of innovation and future profit growth. However, individual investments in tech stocks can be a polarizing subject amongst individual investors. This is primarily due to factors surrounding the competitive nature of management, culture and corporate governance. For these reasons, owning a basket of tech stocks in the form of an Exchange-Traded Fund (ETF) may be a better strategy for some people than individual stock selection. ETFs take nearly all of the individual fundamental attributes of stocks out of the equation, allowing investors to focus on select areas of the technology ecosystem.


The opportunities in technology and the sheer number of options available for ETF investors have never been more abundant. When allocating to a technology-focused ETF, key considerations should include (1) index selection (2) fund size and (3) strategy. Striking together an intuitive balance of funds with growth or income potential could add a supplementary facet to an otherwise traditional portfolio management approach.

Shopping for an ETF by trying to compare and contrast performance and individual fund characteristics is often times an arduous task. However, it doesn’t need to be when you consider that nearly all of the details on security selection are spelled out in plain black and white. You simply need to formulate what your portfolio goals are and how you can integrate an appropriate technology ETF into your portfolio to align with those goals.

Now that ETFs are considered a mainstay investment option for short and long term investors alike, sector ETFs encompassing every form of broad-based and industry-group specific strategies have amassed a bountiful landscape of imaginative and useful products.

One of the oldest solid-state products in existence that still contends popularity is the Technology Select Sector SPDR ETF (XLK). As the second largest technology ETF by assets under management, it was originally designed alongside it peers, the Select Sector SPDRS, to be part of the 10 individual sectors of the S&P 500 Index. XLK is market cap weighted, and envelopes the cross section of technology stocks strictly within the S&P 500. For this very reason, it carries a large concentration of large-cap stalwart tech names such as Apple AAPL +0.26% Inc. (AAPL), Google GOOG +1.15% Inc. (GOOG) and Microsoft MSFT -0.29%, Inc. (MSFT).

XLK offers investors an easy avenue of overweighting technology within a diversified portfolio of broad-based market indexes. However, it’s important to consider XLK’s lack of diversification outside tech names not admitted to the S&P 500. Which in turn leaves aside small- and mid-cap names in favor of large, well established companies with long operating histories.


Created through a collaboration of traditional index formulation and fundamental characteristic research, the First Trust Technology Alphadex Fund (FXL) is an ETF which ranks and then overweights companies with strong fundamental attributes. These traits include six and 12 month price appreciation, return on assets, book value to price and cash flow to price ratios. In the end, the top 75% of the screen marks 90 stocks for inclusion to the index ranging from small to large capitalization companies.

Investors seeking niche exposure in the world of technology stocks now have the option of investing in ETFs that target specific sub-sectors of technology. These products were created specifically for tactical investors that prefer a layer of diversification, but not at the expense of including an underperforming industry group within a specific sector.

Two examples of these ETFs are the First Trust Dow Jones Internet Index (FDN) and the PowerShares NASDAQ Internet Portfolio (PNQI). These ETFs are designed to track the largest, most liquid companies that generate at least half of their revenue from an internet related business. FDN’s top holdings include Facebook Inc. (FB), Amazon Inc. (AMZN) and eBay, Inc. (EBAY), while PQNI’s top holdings are also Facebook (FB) and eBay, Inc. (EBAY), as well as Google Inc. (GOOG). An aggressive investor might favor a position in FDN to hone in on the rapidly expanding growth of internet stocks engaged in content distribution or social networking versus companies engaged in the manufacturing and sales of technology hardware or software. Since FDN and PQNI are specialized strategies, it’s no surprise that their expense ratios are 0.60%, which is significantly higher than most broad-based ETFs.

Lastly, for investors seeking income from their invested capital, there is an index strategy that can leverage the strong free cash flow and healthy balance sheet attributes of mature technology and telecommunications companies. The First Trust NASDAQ Technology Dividend ETF (TDIV) tracks a specialized index that is comprised of companies across the capitalization structure that have a consistent history of paying dividends to shareholders. TDIV carries a current SEC Yield of 2.53%, and has an expense ratio of 0.50%. An investor looking to diversify a traditional equity income portfolio outside interest rate sensitive areas such as utilities or consumer staples stocks could utilize a fund like TDIV.

As the technology landscape has evolved over time, so have the need for products targeting multiple areas of the marketplace. ETFs have proven themselves to be one of the easiest and most efficient vehicles for exposure to individual sectors and industry groups. Evaluating and selecting the appropriate ETF for your underlying goals could ultimately yield the most favorable outcome, rather than investing in individual stocks.

*All performance statistics as of 2/3/14, data provided by Morningstar.com.

 

 

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.

 

Gold Rallies on Yellen's Testimony; Equity Markets Bounce Back Updated: 2/12/2014

Janet Yellen became the new head of the Federal Reserve and gave testimony this week surrounding the continuation of the pre-existing monetary policy.  Broad equity markets bounced back to levels last seen three weeks ago, with returns of over 1.5% since the opening on Monday. In addition, gold and gold miners also rallied as Yellen’s testimony alluded to softness in the labor market and overall economy.
 
“While the U.S. equity market has recovered a bit this week, we are also seeing a significant jump in precious metals which shows some skepticism about the broader economic recovery,” said David Krein, Managing Director of NASDAQ OMX Global Indexes.
 
INDEX MOVES THIS WEEK 
  • NASDAQ BIOTECHNOLOGY INDEX (NBI) has rebounded this week on strong earnings, returning 3.94% since Friday’s close.  Year-to-date performance for the index is up 13%.
  • NASDAQ OMX GLOBAL GOLD & PRECIOUS METALS INDEX (QGLD) was up 5.91% as of noon on Wednesday from the most recent Friday close.  The price of gold is currently $1,293.00 per ounce, up around $30 from the end of last week and over $90 year-to-date.
  • NASDAQ 100 INDEX (NDX) is up 2% since Friday.  Look for earnings over the next two days on 9 of the 100 securities in the index today including Cisco, Mondelez, Kraft and Whole Foods, among others.
INDEX TO WATCH
  • The European Central Bank is toying with the notion of dropping rates into negative territory.  Look for activity in the region by tracking the NASDAQ EUROPE INDEX (NQEU) and the NASDAQ EUROZONE INDEX (NQEURO), which are up 15% and 21%, respectively, year-over-year.
 

Broad equity markets continue to drop amid earnings disappointments Updated: 2/5/2014

Investors reacted negatively to a slight miss in ADP’s January private sector job growth estimate of 175,000 vs. expectations of 180,000.  Earlier, disappointing earnings forecasts caused a broad selloff, with global equity markets dropping over 3% so far this week.
 
“Broad equity markets have continued to drop this week amid some disappointing earnings reports and continued turmoil in emerging markets,” said David Krein, Managing Director of NASDAQ OMX Global Indexes. “The decision to continue to taper at Fed Chairman Ben Bernanke’s last meeting did not buoy the market from its recent slide, as some investors may have hoped.”
 
INDEX MOVES THIS WEEK 
  • NASDAQ BIOTECHNOLOGY INDEX (NBI) has continued its recent decline with a 2.97% drop this week.  Year-to-date performance for the index is still up 5% on the heels of the Index’s best year in the past decade.
  • PHLX OIL SERVICE SECTOR INDEX (OSX) was down 2% as of noon on Wednesday from the most recent Friday close.  The price of crude oil was flat from last week at $97.28 per barrel.
  • NASDAQ OMX GLOBAL AUTOMOBILE INDEX (QAUTO) is down 3% with the expectation of slowing growth in auto sales in 2014.
INDEX TO WATCH
  • Twitter and a handful of other social media companies are expected to report earnings in the next week.  Look for activity in the space by tracking the NASDAQ INTERNET INDEX (QNET), which is up 48% year-over-year.
 

Tapering Expected to Continue Updated: 1/29/2014

It is expected that the Fed will reduce its bond buying from the current $75B per month to $65B at today’s meeting, the last for outgoing Chairman Ben Bernanke. In anticipation of this announcement, we’ve seen global equity markets drop over 3% this week as investors also reacted to some disappointing earnings forecasts and global pressure on emerging markets.

“Equity markets have dropped amid disappointing earnings outlooks and emerging markets worries,” said David Krein, Managing Director of NASDAQ OMX Global Indexes. “The Fed is widely expected to reduce its bond buying program to $65B per month at today’s meeting, and investors have likely prepared for this scenario.”

 

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY INDEX (NBI) is up 0.89% since Friday’s close. Year-to-date performance for the index is up a hefty 7.5% on the heels of the Index’s best year in the past decade.
  • PHLX OIL SERVICE SECTOR INDEX (OSX) was down -0.70% as of noon on Wednesday from the most recent Friday close. The price of crude oil was flat from last week at $97.08 per barrel.
  • PHLX HOUSING SECTOR INDEX (HGX) is up 2.58% with the expectation of interest rates remaining low until after Fed Chairman’s Ben Bernanke’s departure.

INDEX TO WATCH

  • Facebook and a handful of other social media companies are expected to report on earnings in the next week. Look for activity in the space by tracking the NASDAQ INTERNET INDEX (QNET), which is up 48% year-over-year.

Announcing the SmartTrust® NASDAQ International Dividend Achievers Trust Updated: 1/25/2014

NASDAQ OMX Global Indexes has partnered with Hennion & Walsh to offer the SmartTrust® NASDAQ International Dividend Achievers Trust, Series 1. This new investment vehicle gives customers access to the NASDAQ Dividend Achievers brand and the underlying companies it represents.

The two-year Trust seeks to pursue its objective by investing in a portfolio consisting of the publicly-traded foreign securities comprising the NASDAQ International Dividend Achievers™ Index. The objective of the Index is to track the performance of certain foreign securities with at least five consecutive years of increasing regular dividend payments.

“NASDAQ OMX has built its Global Index business to collaborate with sponsors like SmartTrust® to offer increased access to liquidity, transparency and cost efficiency,” said Rob Hughes, Vice President, Global Information Services.

The security types eligible for the Index include American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), limited partnership interests, ordinary shares and shares of limited liability companies.

“Our index licensing arrangement with NASDAQ OMX provides for an excellent complement to our existing suite of equity-based income solutions at SmartTrust®,” said Kevin Mahn, President and Chief Investment Officer, Hennion & Walsh Asset Management, one of the nation’s premier providers of investment services and an advocate for individual investors.

“Whereas the majority of our current equity-based income solutions are largely U.S. focused, the SmartTrust®, NASDAQ International Dividend Achievers Index Trust will add an internationally focused strategy that still has an income component at its core. We believe that the new relationship with NASDAQ OMX, and their underlying International Dividend Achievers index strategy, is well positioned for the current market environment and will be very positively received by the many financial advisors that we work with around the country.”

According to Hennion & Walsh, though December 5, 2013, total assets in SmartTrust® have grown over 142% since 2010 while the number of Trusts outstanding at SmartTrust® have grown over 314% over that same time period. Today, SmartTrust® has 58 Trusts outstanding, with 12 of these Trusts currently being available for purchase in the primary market.

“We believe the launch of this new Trust is well timed, as the European market continues its recovery,” said Bill Walsh, Chief Executive Officer of Hennion & Walsh. “This Trust allows the advisors we work with to add strength and stability to their clients’ international equity allocations.”

Hennion & Walsh has wholesalers around the country who are dedicated to serving advisors and investors. For more information about the SmartTrust® NASDAQ International Dividend Achievers Trust or any other SmartTrust® UIT product, please contact the firm’s Internal Support Desk at 888-505-2872 or visit www.smarttrustuit.com.
 

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.”
 

 

Last Meeting for Bernanke; Tapering Expected to Continue Updated: 1/22/2014

Broad U.S. and Global equity markets are up slightly after reaching all-time highs intra-day last week. Next week’s Fed meeting on January 28-29 will be the last for current Fed Chairman Ben Bernanke prior to handing over the reins to Vice Chair Janet Yellen. It has been widely expected that the tapering will continue next week dropping the bond buying from the current $75B per month to $65B. In addition, rates are expected to remain low at the very least until after Ben is no longer running the Fed.

“Interest rates are expected to remain low until after Fed Chairman Ben Bernanke’s departure,” said David Krein, Managing Director of NASDAQ OMX Global Indexes. “Tapering should continue to drop to $65B per month at next week’s meeting, and we are expecting that number to progressively drop through the year after Vice Chair Janet Yellen has taken over.”

INDEX MOVES THIS WEEK

  • NASDAQ BIOTECHNOLOGY (NBI) has continued its transcendence in the first few weeks of 2014 on the heels of the Index’s best year in the past decade. The Index has returned 2.33% as of noon on Wednesday from the most recent Friday close.
  • PHLX OIL SERVICE SECTOR (OSX) was flat with a relative increase of 0.27%. The price of crude oil was $96.66 per barrel.
  • NASDAQ OMX CEA SMARTPHONE (QFON) is up 1.39% following the continued flurry of price-conscious moves by providers to steal customers from one another.

INDEX TO WATCH

  • Gold miners are coming back into favor in the first few weeks of 2014 after a rough 2013. Look for activity in the space by tracking the PHLX GOLD/SILVER SECTOR (XAU), which is up 11% YTD following a -48% return in 2013.

 

Index Wars By: John Jacobs
on 1/16/2014

Index Wars: The effect of increased competition on ETF Providers, Pensions and other Institutional Investors. As long as investors continually look for new and better ways to invest in, track or beat the market, index providers will continually be challenged to find ways to create better, more robust benchmarks to meet customer expectations. The demand on index providers today is greater than it’s ever been. Top indexers are expected to do more and more, and as a result changes in the industry are necessary to respond to increased investor demands. This has greatly increased competition among indexers and that competition has had a direct effect on exchange-traded funds (ETFs) providers, pension funds and other institutional investors who are focused on passive investing.

Product Brand has More Power

In the past, almost anyone with a computer could create an index. They were relatively simple and didn’t require a lot of functionality. Today, however, index providers are expected to create, calculate and disseminate indexes rapidly with the ability to perform years of back-testing. Customers ranging from ETF providers to institutional investors are looking for full service indexers with sophisticated databases that have the capabilities and flexibility to respond to their growing needs.

Customer demands and priorities are shifting like we’ve never seen.  The index licensing cost component of total expense ratios has continued to decline in financial products over the last several years and ETF providers are increasingly willing to re-evaluate their current benchmarks in search for the best value available. In the early days of ETFs, the index was a key part of a buyer’s purchase decision. Companies such as S&P sold products and people bought ETFs based in large part to the overall brand of the index provider. 

While having a strong index brand is still important to investors, more and more investors are instead focusing on the brand of the product provider (e.g., Vanguard, PowerShares, etc.). Today, the top three ETF/ETP providers – IShares, SPDR ETFs and Vanguard – account for 69.6% of Global ETF/ETP assets, while the remaining providers each have less than 4% market share.1

Since the brand of the index provider is now only a part of what drives the investment decision, ETP providers have the flexibility to choose among multiple index providers offering nearly identical benchmarks. The increased competition is driving down costs, thus reducing expense ratios. Sophisticated index investors are getting smarter and more willing to look at a broader array of offerings as ETF providers share these cost saving measures with their customers.

Indexes are Becoming Commoditized

With increased competition comes the natural commoditization of products and certain index segments. Global equities are a great example. Twenty years ago, it was actually quite complicated to find a global equities ETP product; however, it is much easier today because every major indexer offers a very similar suite of benchmarks. In the same way, the market has come to expect a consistent set of standards for representing different market sectors so the diversions among index providers are much narrower than they used to be. Twenty years ago, the differences between the offerings of the various index providers were fairly wide. Today, the differences are minimal, making it easier to step from one provider to another, and ultimately reducing the cost of the product. 

Of course there are certain exceptions where index providers differentiate themselves. There are some flagship indexes such as the S&P 500 and the NASDAQ-100 where commoditization has not taken hold. There are also niche indexes, such as a sector family or specific industry-focused indexes like the NASDAQ Biotechnology Index (NBI), where a few indexers have a distinct foothold on the industry.

Pension Consultants Influence: Beyond Asset Allocation

Much of the focus on fees is thought to be on the shoulders of ETF providers, but they are only part of the ecosystem. Pension consultants, who recommend specific benchmarks to their clients, are also starting to weigh in on index licensing costs.  Up until recently, consultants were not as cognizant of how much the people downstream were paying for data. For the asset owners and their managers, this was a hidden cost.  Now, they are realizing that this data cost is a factor in overall investment performance.  Previously, consultants’ primary focus was on their clients’ asset allocation, risk tolerance and risk profile. More often than not, they would then default to the brand name indexes they were accustomed to using.

Today these indexes are receiving more scrutiny based on their pricing. Consultants need to truly understand that every decision matters and which benchmark they choose can make a huge difference in cost. They should be asking themselves the following questions:

  • Are my benchmarks truly reflective of the underlying components of that asset class? 
  • Are they trackable? 
  • Does the provider have a good track record and the ability to track the indexes it offers? 
  • Can I access the data?
  • Is it reliable?
  • What does it cost?

As the index world changes, pension funds and asset owners are going to demand more from their consultants when they walk in the door with their recommendations.

A More Informed Industry

The movement to reduce costs is a big change for the indexing industry and one that will likely accelerate over time. The entire industry —ETF providers, asset owners, pension consultants — is becoming more aware of the costs associated with various indexes and is more willing to look at alternatives to reduce these costs. As more investors become aware of the fees they are paying, the pressure will mount.

Not everyone in the indexing industry is going to be able to keep up. We are already beginning to see consolidation and in the next five to ten years the field will likely be further reduced, with only six or seven large indexers and a few niche players remaining in the game.  The mid-size indexers will more than likely disappear due to the effects of price competition. In the end, the main beneficiary from this competition will be the investor since these cost savings are passed on in the form of lower fees and expense ratios.

 

1Source: ETFGI

US Train Derailments Impact the Oil Markets Updated: 1/15/2014

Following Monday’s drop, broad US markets are up and are reaching new all-time highs intra-day. Three oil-train derailments in the US in the last few months have given investors cause for concern in the oil markets. The semiconductor industry is up this week in part due to consolidation deals in the space as well as recent upgrades by investment bank analysts.

“Speculation following recent train derailments carrying oil across the US has spurred widespread safety concerns. The markets are currently reflecting these concerns by selling off their oil producing companies,” said David Krein, Managing Director of NASDAQ OMX Global Indexes.

INDEX MOVES THIS WEEK

  • PHLX OIL SERVICE SECTOR (OSX) and NASDAQ GLOBAL OIL & GAS INDEX (NQG0001) were down -0.76% and -0.68%, respectively as of noon on Wednesday from the most recent Friday close. The price of crude oil was $94.35 per barrel.
  • NASDAQ BIOTECHNOLOGY (NBI) was up 1.69% on the heels of the index’s best year in the past decade.
  • NASDAQ GLOBAL CNSMR GOODS INDEX (NQG3000) is flat at 0.10% following the end of the holiday season on speculation that it may be an even-keeled winter for consumers.

INDEX TO WATCH
Recent mobile deal announcements to shift consumers from one brand to another are spurring interest in the industry. In addition, the Apple/China Mobile deal has garnered much fanfare. Look for activity in the space by tracking the NASDAQ OMX CEA SMARTPHONE (QFON), which is up 29% year-over-year.

 

 
 

Picking the Right Index By: John Jacobs
on 1/13/2014

Stepping up to the plate to take your first swing at ETF investing has never been simpler and more cost effective, but as eager investors approach these products, are the really understanding the differences in in portfolio composition? Index formulation methodology could likely have a much greater impact on bottom-line performance than fee structure over time. Now that we have a fair amount of price history for comparative analysis, the differences in index construction can amount to a sizeable margin of total return over time.

This is precisely why many exchange-traded product providers are setting their sights on challenging the traditional cap-weighted styles for more exotic, alternative, or smart index strategies. However, these innovative strategies still have a big hill to climb, as cap-weighted indexes still control the largest share of assets under management in the ETF universe.

There is no hard and fast rule to index selection, which is why investors need to be more conscious than ever about the options that are available and how to ultimately select an appropriate fund.

The Basics
There are three primary index construction techniques that publishers use to construct the allocation size in an equity-oriented ETF: market capitalization weight, equal weight, and fundamental weight.

Let’s begin with the index blueprint that most investors are familiar with: market-cap weighting sizes constituent securities according to the total market value of their outstanding shares. In a real world example, examining the PowerShares NASDAQ 100 ETF (QQQ), Apple Inc. (AAPL) occupies roughly 12.5% of the fund due to its $500 billion market cap. On the flip side, the smallest holding, F5 Networks (FFIV), only occupies 0.17% due to its much smaller $7 billion market cap.

Quite simply, a cap-weighted index will advance or decline more dramatically in value in response to the changes in market value of larger holdings vs. smaller holdings. One inherent benefit to this style of index composition is that traditionally larger, more established companies will present less volatility than smaller ones.

However, it’s also important to bear in mind that investors who select cap-weighted indexes are essentially disproportionately tilting their equity allocations toward larger companies that can inhibit performance characteristics over the long term. In a recent study by Goldman Sachs Asset Management that examined the stock market over the past 20 years, it was proven that small and mid-cap stocks have outperformed large cap stocks by a fair margin while presenting only slightly higher volatility.**

Using the same scenario, equal weight indexes are often created using the same list of stocks as cap-weighted indexes. However, instead of examining the size of the company, an equal weight index allocates identical proportion amongst all the constituent securities. So, Apple Inc. would carry an identical weight within the index as F5 Networks, which is the goal behind the NASDAQ-100 Equal Weighted Index. At first glance, this type of weighting strategy might seem illogical in relation to the aforementioned cap weighted style, as investors may instinctively want to own a larger share of mature, successful companies. But, it can often be prudent to carry a larger slice of the pie in small and medium capitalization companies in a rising market environment.

Using a relevant 2013 performance comparison, the cap-weighted SPDR S&P 500 ETF (SPY) has gained 28.97%, while the Guggenheim Equal Weight S&P 500 ETF (RSP) is up 31.74%, a divergence of 2.77%. In comparison, RSP carries an expense ratio nearly four times higher than SPY at 0.40%, making for a compelling value proposition even in light of a higher fee structure. Investors should also be mindful that a larger portion of their invested capital is allocated to companies that are smaller in size, which has been known to exhibit higher beta over time.

Relatively new when compared to the other two strategies, the last type of index methodology is a fundamentally weighted group of stocks. These indexes are developed to account for comparable company metrics such as book value, earnings, revenue, or even dividend rates. Companies exhibiting the strongest traits based upon the screening methodology are then assigned the largest weight within the index.

The beauty of fundamentally allocating to companies using performance based metrics is the ability to overweight a company that is currently undervalued by the market, and vice-versa for overvalued examples. It also gives investors the ability to zero in on a specific metric, such as free cash flow, and apply that metric across a single sector. A striking example illustrating the effectiveness of fundamentally weighted strategies could be made using the First Trust Consumer Staples AlphaDex ETF (FXG) and the SPDR Consumer Staples ETF (XLP). FXG is currently up 39.83% year-to-date, while XLP has risen 25.44% through the same time frame, totaling a staggering divergence of 14.39%.

Selection and Application
Choosing the right index for your personal needs doesn't come down to typical investment roadblocks such as size or accessibility, but rather your individual goals and tolerance for volatility. In other words, investors have become accustomed to traditional market-cap weighted indexes due to their long running history. This is precisely why you should ask yourself whether you feel comfortable stepping outside the classical approach to index investing. In reality, you could conceivably pay a higher fee in order to gain the potential reward that the index you choose hits the market's sweet spot.

As demand evolves for more complicated and specific benchmarks, index construction is growing far more complex. Regardless of strategy, it is imperative that investors demand that index providers bring the highest quality, objective, transparent and rules-based indexes to the market. Indexers must ensure that they have the best available data and technology to match the growing complexities, and methodologies must remain open and transparent to allow for optimal tracking by investors, product issuers and traders.

The overarching conclusion that can be drawn from the differences between these three strategies is the universal shift from overweight positions in large well-known names to concentrated positions in smaller, more nimble, or fundamentally sound companies. These traits should immediately appeal to those investors seeking the chance to outperform traditional benchmark indexes, but it will likely come with the cost of increased volatility over time.

Conversely, cap weighted indexes might still be the right fit for investors who believe in the strength of large companies to dominate a specific segment of the market, and don't want to risk the chances of underperforming traditional market barometers. Undoubtedly, the market for alternative index strategies is growing and attracting assets. Educating yourself on the intricacies of these new products and their potential benefits will ultimately strengthen your investment selection process. Performing your own due diligence alongside your individual goals should lead you down the path of picking the appropriate index that meets your unique investment needs.
*Performance data provided by Yahoo! Finance Through November 30th, 2013

*Goldman Sachs Asset Management White Paper “The Case for Mid-Cap Investing” June 2013, p. 2

Published in Forbes.com January 9, 2014

NASDAQ OMX: Leading the Charge in ETFs Updated: 1/12/2014

We are proud to announce that the First Trust NASDAQ Rising Dividend Achiever ETF (symbol: RDVY), based on the NASDAQ US Rising Dividend Achiever Index, launched on January 7, 2014, making it the first Exchange-Traded Fund to launch this year.

The NASDAQ US Rising Dividend Achiever index focuses on companies that have track records of boosting their payouts while maintaining strong financial metrics. To be included in the NASDAQ US Rising Dividend Achievers Index, companies must have paid a dividend in the trailing 12-month period greater than the dividend paid in the trailing 12-month period three and five years prior The Index then utilizes screens on companies’ financial condition to select the names that are in the best shape to continue to increase dividends moving forward by looking at each company’s earnings and a high cash to debt ratio.

The NASDAQ US Rising Dividend Achiever Index 50-stock lineup includes some familiar names with multi-decade dividend increase runs, including Exxon Mobil (XOM), Chevron (CVX) and Coca-Cola (KO). The index also can also include the future dividend leaders including those in the tech sector such as Cisco (CSCO), Oracle (ORCL) and Apple (AAPL).

The NASDAQ US Rising Dividend Achieves Index is the latest dividend index from NASDAQ OMX Global Indexes to be used by an ETF sponsor.

In December 2012, NASDAQ OMX acquired Mergent’s Dividend Achievers indexes, the leading brand of indexes tracking companies with strong long-term dividend growth.

“We’re taking the highly successful Dividend Achievers concept and turning it up a notch to bring a new solution to dividend focused investors who are tuned into combating rising rates while maintaining solid price appreciation. We have the right dividend story for this year with the US Rising Dividend Achiever Index. This product is an innovative way to couple exposure to traditional dividend names alongside the quickly growing dividend companies,” said Robert Hughes, Vice President, NASDAQ OMX Global Indexes.

For more information, please contact robert.hughes@nasdaqomx.com.
 

Fed Tapering To Begin: How will it impact the financial markets? Updated: 1/8/2014

Broad US markets are relatively flat this week in anticipation of the Fed meeting minutes that are coming out today. It has been largely reported that the Fed is expected to reduce its bond purchases down to $75 billion starting this month. What most analysts are looking for coming out of the Fed meeting is how optimistic the Fed is for 2014 and whether they expect to entirely wind down monthly bond purchases to nothing by the end of the year. The ADP US nonfarm private sector employment report came out this morning noting an increase of 238,000 jobs from November to December.

“Investors are now wondering if tapering will occur consistently throughout the year to the point that there will no longer be a bond purchasing program at year-end,” said David Krein, Managing Director of NASDAQ OMX Global Indexes. “The recent upbeat jobs report might give Fed officials more confidence that the markets are ready for tapering to increase.”

INDEX MOVES THIS WEEK:

  • PHLX GOLD/SILVER SECTOR (XAU) was down -0.65% as of noon on Wednesday from the most recent Friday close.The price of gold was $1220.80 an ounce.
  • NASDAQ BIOTECHNOLOGY (NBI) was up 2.27% on the heels of the index’s best year in the past decade.
  • NASDAQ INTERNET (QNET) is up 2.83% amid speculation surrounding internet advertising revenue increasing in 2014 and beyond.

INDEX TO WATCH The December auto sales report was released with dismal figures. Look for auto to rebound by tracking NASDAQ OMX Global Automobile (QAUTO), which is up 35% year-over-year.

Vote for NASDAQ OMX Global Indexes 2014 Most Innovative Index Provider Updated: 1/8/2014

NASDAQ OMX Global Indexes is seeking your support in nominating us for a 2014 ETFExpress Global Award. If you're reading this, we hope you agree that NASDAQ OMX has what it takes to be “The Most Innovative Index Provider of the Year.”

Your nomination will take less than 60 seconds with three simple steps:

  1. Go to the ETFExpress web site
  2. Choose #27 “The Most Innovative Index Provider”
  3. Type in the following:

Name of Firm: NASDAQ OMX

Contact information of Firm: GlobalIndexes@NASDAQOMX.com

Short justification as to why you made this choice: We have listed below some of the reasons you might consider us for The Most Innovative Index Provider. Feel free to use these or provide your own reason.

  • NASDAQ is one of the only index providers to have products listed globally covering equities, commodities and fixed income.
  • ETPs based on NASDAQ indexes are listed in 16 countries, and NASDAQ OMX is the first index provider to have its indexes linked to ETPs in China, India and Iceland.
  • As of 2013 year-end, NASDAQ had 148 licensed ETPs globally with approximately $92.3 billion in assets under management.
  • The largest dividend ETF with just under $20B in assets under management tracks the NASDAQ US Dividend Achievers Select Index.
  • In 2013, NASDAQ OMX partnered with Accretive Asset Management to co-brand and grow BulletShares, the first fixed-maturity corporate bond indexes; since then, assets have grown in BulletShares ETFs substantially and the NASDAQ BulletShares Ladder indexes were launched.
  • In October 2013, NASDAQ OMX launched the NASDAQ US Rising Dividend Achievers Index, a continuation of the Dividend Achievers brand. The index was designed to include stocks that are best positioned to continue dividend increases, and the methodology includes both several dividend criteria and balance sheet (sustainability/quality) criteria.

The deadline for nomination is January 15, 2014. Please CLICK HERE TO VOTE NOW.

Thank you for your support!

December Monthly Performance Report Updated: 1/3/2014

The NASDAQ Commodity Natural Gas ER Index is December's top performer at 7.1% and the NASDAQ Axioma Equity-Commodity Gold Index is the worst performer of December at -4.7%. Get a quick overview of NASDAQ OMX Index performance data for our top 50 most-watched indexes here.

Disclaimer Updated: 1/1/2014

NASDAQ® and NASDAQ OMX® are registered trademarks of The NASDAQ OMX Group, Inc. 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 or NASDAQ proprietary indexes 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.
© 2014. The NASDAQ OMX Group, Inc. All Rights Reserved.

 

Annual Changes to the NASDAQ-100 Index Updated: 12/13/2013

The annual re-ranking of The NASDAQ-100 Index, composed of the 100 largest non-financial stocks listed on The NASDAQ Stock Market®, occurs this month.

Effective prior to market open on Monday, December 23, 2013, the following five securities will be added to the Index: DISH Network Corporation (NASDAQ: DISH), Illumina, Inc. (NASDAQ: ILMN), NXP Semiconductors N.V. (NASDAQ: NXPI), TripAdvisor, Inc. (NASDAQ: TRIP) and Tractor Supply Company (NASDAQ: TSCO).

“The NASDAQ-100 Index is a globally recognized brand that includes 100 of the world’s most dynamic non-financial stocks listed on The NASDAQ Stock Market," said NASDAQ OMX Executive Vice President John L. Jacobs. "The objective, transparent re-ranking process ensures that the NASDAQ-100 remains a relevant investable index that is the underlying benchmark for approximately 7,200 products in 23 countries with a notional value of approximately $1 trillion.”

The NASDAQ-100 Index dates to January 1985 when it was launched along with the NASDAQ Financial-100 Indexâ, which is comprised of the 100 largest financial stocks on NASDAQâ. These indexes act as benchmarks for investment products such as options, futures, and funds. The NASDAQ-100 is re-ranked each year in December, timed to coincide with the quadruple witching expiration Friday of the quarter.

On a cumulative price return basis, the NASDAQ-100 Index has returned almost 2800% since inception, although past performance is not indicative of future performance.

The NASDAQ-100 Index is the basis of the PowerShares QQQ Trust (NASDAQ: QQQ), which aims to provide investment results that, before expenses, correspond with the NASDAQ-100 Index performance. In addition, options, futures and structured products based on the NASDAQ-100 Index and the PowerShares QQQ Trust trade on various exchanges.

As a result of the re-ranking, the following five securities will be removed from the Index: Fossil Group, Inc. (NASDAQ: FOSL), Microchip Technology Incorporated (NASDAQ: MCHP), Nuance Communications, Inc. (NASDAQ: NUAN), Sears Holdings Corporation (NASDAQ: SHLD) and DENTSPLY International Inc. (NASDAQ: XRAY).

Read more about NDX-100.  

  

The Future of Dividend Investing By: John Jacobs
on 12/11/2013

Searching for yield in unlikely places has been an effective strategy for investors looking to gain exposure outside of the classic reliable income sectors such as utilities, healthcare or consumer staples.   Social needs have a way of shaping investor demand; and as the ever-burgeoning population of retirees shifts from a growth mentality to an income philosophy, there are several innovative products that could very well shape the future of dividend investing. 

This year, investors were broadsided by rising interest rates.  Principal values of most fixed-income assets have exhibited volatility that we have not seen for decades. And while dividend-paying stocks briefly weakened, they are now back to all-time highs.  With earnings multiples on commonly held dividend stocks now stretched to historically high levels, where are investors turning to satisfy their cash-flow needs while steering clear from inevitable bull traps?

When looking at an investment opportunity to generate an income stream, investors should ask themselves whether that investment can maintain its principle value alongside the ability to grow its distributions over time.  In addition, performing due diligence on the level of volatility the investment has exhibited throughout history will offer a glimpse of what to expect in the event the economy takes a down turn.  

Dividend Growth Over Time

Dividends have accounted for over 40% of total returns over the last 80 years1.  And it has been shown that companies that grow their dividends over time will weather a rising rate environment, and can even thrive in its wake.  A great example of this would be to compare the current 10-year Treasury note yield to the yield on a basket of dividend growth stocks. 

This year we saw a tremendous rise in the 10-year Treasury note yield, which moved from a low of 1.6% to its current level of 2.5%. During that same time frame, the WisdomTree U.S. Dividend Growth Index (DGRW), a broadly diversified basket of dividend growth stocks, has maintained its yield of 2.00%.

If an investor can reasonably say that a basket of stocks will aggressively grow their dividends year-over-year for the next 10 years, the chances of maintaining purchasing power due to inflation are greatly enhanced.   In addition, now is still a great time to invest in dividend growth stocks since payout ratios (or the percentage of free cash flow that is returned to investors) are still very attractive when compared to forward earnings momentum.

Investors seeking a higher yield may consider the PowerShares High Yield Equity Dividend Achievers Portfolio (PEY), which is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends.  The current 30-day SEC yield on PEY is 3.53% and it has a larger emphasis on small and mid-cap dividend paying stocks.  Since there are many ways of calculating yield, the 30-day SEC yield is a method specified by the SEC to calculate yield on funds, which then must be posted by the fund provider to create an “apples to apple” figure for investors. PEY is overweight small and mid-cap stocks vis-à-vis a more natural / neutral market-cap weight.

Sector Dividend Investing

A more targeted theme investors might consider when trying to grow income over time would be an allocation to a specific sector, such as large-cap value technology stocks.  The First Trust NASDAQ Technology Dividend Index Fund (TDIV) is designed to include companies that are consistently paying and/or growing their dividends over time.  Many of these companies are currently trading at price/earnings multiples marginally smaller than the general market.   The current 30-day SEC yield of 2.90% from the 87 holdings in TDIV is more attractive when juxtaposed with DGRW’s more broadly diversified mix of 294 holdings.

With the majority of TDIV’s allocations outside interest-rate-sensitive equity themes, its constituents aren’t as dependent on debt issuance as other income sectors.  Investors may ultimately be better positioned to endure a rise in long-term interest rates, without borrowing costs eating into profitability. 

Often times sector investing can enhance returns by providing overweight allocation to a segment of the market that offers attractive growth and income potential.  To do this, investors would choose an index that maintains exposure to companies that are actively increasing their returns to shareholders. 

Dividend Investing Through Multiple Asset Classes

Targeted sector strategies aside, a multi-asset approach is another way for investors to gain exposure to a broadly diversified and liquid basket of income producers.  Their popularity is just beginning to gain momentum, with individual and institutional investors seeking a low-cost alternative to traditional balanced mutual fund strategies. 

Breaking the mold of traditional asset allocation, the First Trust Multi-Asset Diversified Income Fund (MDIV) embodies a colorful mix of income-producing assets that offers an attractive yield and opportunity for growth of invested capital.  Its asset allocation framework is designed around five core sleeves, which are currently allocated to: 25% dividend equities, 15% high yield bonds, 20% master limited partnerships, 20% preferred stocks and 20% REITs.  With a 30-day SEC yield of 6.85%, this ETF is allocated to some of the highest dividend paying sectors of the market. 

The inherent feature that is most important to this type of multi-asset strategy has to be its performance in a bifurcated market environment.  As one asset class can often become extended or even overvalued, owning a diversified mix can prove to be a pragmatic risk management tool in a volatile market.

And yet another ETF in this category is the Guggenheim Multi-Asset Income ETF (CVY), which incorporates closed-end funds and an overweight allocation to dividend-paying equities in its mix. 

Conclusion

Part of any successful portfolio management approach is the abundance of choices available to reach a stated goal.  The more tools an investor possesses, the higher the probability their goal will ultimately be achieved.  Although the basic philosophy of dividend investing will always remain the same, the emergence of innovative strategies presents investors with robust value propositions in virtually any market environment.

1 Source: Ibbotson, as of December 31, 2010.

NASDAQ® is a registered trademark of The NASDAQ OMX Group, Inc. (which collectively with its affiliates is referred to as “NASDAQ OMX”) and is licensed for use by WisdomTree U.S. Dividend Growth Index (DGRW), PowerShares High Yield Equity Dividend Achievers Portfolio (PEY), First Trust Multi-Asset Diversified Income Fund (MDIV), First Trust NASDAQ Technology Dividend Index Fund (TDIV), Guggenheim Multi-Asset Income ETF (CVY). DGRW, PEY, TDIV, MDIV and CVY have not been passed on by NASDAQ OMX as to its legality or suitability, and it is not issued or sold by NASDAQ OMX. NASDAQ OMX makes no warranties and bears no liability with respect to the DGRW, PEY, TDIV, MDIV and CVY. 

Nothing contained herein should be construed as investment advice from NASDDAQ OMX, either on behalf of a particular financial product or an overall investment strategy. NASDAQ OMX makes no recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund. Investors should undertake their own due diligence and carefully evaluate financial products before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

ABA NASDAQ Community Bank Index (ABAQ) Turns 10! Updated: 12/4/2013

The ABA NASDAQ Community Bank Index (ABAQ), the most broadly representative stock index for community banks, celebrates its 10-year anniversary in December. The index, which is composed of 377 banks with a market capitalization of approximately $180 billion, was created on December 2, 2003, with a base value of 250.

The market-cap weighted index includes NASDAQ-listed banks and thrifts or their holding companies with ICB code of 8300 (or that the American Bankers Association, ABA, determines should be classified as such).

The First Trust NASDAQ ABA Community Bank Index Fund (QABA) is an exchange-traded fund based on the ABAQ.

The ABAQ will celebrate the anniversary on December 4th at a symposium looking at industry growth in 2014, followed by the NASDAQ Closing Bell.

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.”

Oklahoma Firefighters Pension Adopts NASDAQ Global Indexes as Preferred Benchmarks Updated: 11/8/2013

The Oklahoma Firefighters Pension and Retirement System has adopted the NASDAQ Global Index Family to serve as preferred benchmarks for its equity investments. A recent article from P&I Online highlights the first major adoption of NASDAQ Global Indexes by a large pension fund. Below is an excerpt.

The Oklahoma Firefighters Pension and Retirement System, Oklahoma City, is adopting the Nasdaq Global index family as the preferred benchmark for its equity investments, confirmed Gerald W. Garrett, chairman of the $1.9 billion pension fund's investment committee.

Mr. Garrett said in a telephone interview that the pension fund, which previously used the benchmarks preferred by managers, such as MSCI EAFE and the S&P 500, said the change is part what he calls a “three-phase mission to lower the cost, be a good fiduciary and to be a good steward of the firefighters' money.”

The first two phases were to negotiate with the pension fund's money managers on performance fees, and then to do a study on the trading costs of all the money managers, Mr. Garrett said.

“It's been said that I'm trying to pick up nickels in the middle of the highway. If you pick up a lot of nickels they turn into dollars,” Mr. Garrett said.

The pension fund will require its 20 money managers to reconsider their current benchmarks, he confirmed.

“What I'm doing is trying to educate the board, the consultant (and) the money managers: There is a difference in the cost,” Mr. Garrett said. “I know the salespeople at S&P 500, they're friends, but you know money. Well, it's my responsibility to do the best for my plan, and this is an educational deal that I'm going through right now — that nobody knows you're sitting on top of a big mound of snow not realizing there's a giant iceberg below. All we're seeing is the snow. I'm trying to get people to open their eyes and educate them to this point.”

Mr. Garrett hopes his pension fund's adoption of the Nasdaq index family will move other pension funds to look at the benchmarks their managers are employing.

“My goal is (to) lower that cost of that data, and S&P does not have competition right now and Nasdaq will someday be seen as competitors. Someday, Nasdaq will stand up side by side with S&P, and people will be able to make the choice on the data, and consultants will pick benchmarks based on cost. You can buy bananas at the front of the store for a nickel or you can buy them at a stand for two nickels, so why not buy them where they're the cheapest because a banana's a banana.”

The Nasdaq Global indexes comprise more than 25,000 indexes covering 9,000 securities.

A Closer Look: Gold Updated: 11/6/2013

Over the years, many new opportunities have risen allowing investors to gain a stake in Gold, beyond bullion. NASDAQ OMX offers a variety of indexes that provide exposure to gold across different asset classes, including equities, options and futures. Read our latest research piece, A Closer Look: Gold

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.

NASDAQ BulletShares Debuts New Ladder Indexes Updated: 10/14/2013

Today, NASDAQ OMX Global Indexes introduced the NASDAQ BulletShares® Ladder Indexes, which are indexes designed to track traditional bond ladders implemented through target maturity bond exchange-traded funds (ETFs).

The indexes are equal-weighted and use Guggenheim BulletShares ETFs to track defined bond ladders of 0-3 years and 0-5 years of the investment grade and high yield corporate bond markets. Each BulletShares Ladder Index rebalances annually in December to reset the bond ladder and equally weight the components.

"The Bulletshares Ladder Indexes are an important addition to the NASDAQ Bulletshares Index family as they provide investors the same liquidity and diversification benefits as the underlying Bulletshares Indexes themselves, but in a format that systematically captures how many investors choose to assemble their bond portfolios," said David Krein, Head of Index Research, NASDAQ OMX.

Click here to see the full list of NASDAQ Ladder Indexes

NASDAQ Bulletshares Developer to Speak at Inside Fixed Income Updated: 10/14/2013

NASDAQ OMX will be presenting and exhibiting at this year’s Inside Fixed Income Conference, October 18, 2013, at the Grand Hyatt in San Francisco. Hosted by Index Universe, this one-day event aims to deliver insightful content, lively discussions and provide investors with tactical and strategic approaches to benefit their fixed-income allocation.

Join Accretive Asset Management Head of Product Development, Darrin DeCosta, CFA, CPA, at “The High-Yield Trade: Crowded & Dangerous?” panel from 1:35-2:25 p.m. In June, NASDAQ OMX and Accretive Asset Management partnered to create the NASDAQ BulletShares® Indexes, a series that represents the performance of an investment in a diversified, held-to-maturity portfolio of fixed income securities with a common year of maturity.

Visit the NASDAQ OMX booth for the latest information about NASDAQ Bulletshares and learn about our new NASDAQ Bulletshares Ladder Indexes. Plus, enter to win an Amazon Kindle Fire HD!

Can’t make it? Find out more by downloading the white paper “The Minimum Maturity Rules: The Cost of Selling Bonds Before Their Time.”

Introducing NASDAQ OMX Index Snapshot: Global Regions Updated: 10/7/2013

This week, NASDAQ OMX Global Indexes Research, debuts a new kind of analytics report, called Index Snapshot. These new pieces will be published right here on the Global Index Watch site on a weekly basis. Today's report explores the NASDAQ OMX Global Regions - North America, Latin America, Europe, ASPA and Middle East/Africa.

Download Index Snapshot: Global Regions now to see how each region performed in September 2013.

GemShares and NASDAQ OMX Partner To Create GemShares GIGS Diamond Basket Index Updated: 9/12/2013

GemShares, LLC, a pioneer in the delivery of physically-backed diamond investment products to regulated exchanges around the globe, and The NASDAQ OMX Group, Inc. today announced an agreement to develop the GemShares Global Investment Grade Standard (GIGS) Diamond Basket Index. This transparent, rules-based index will provide a standardized pricing mechanism for valuing a diamond basket that could be used for the development of financial products.

The NASDAQ OMX Group and GemShares will develop the GemShares GIGS Diamond Basket Index to track the prices of diamonds that have met the patented standards for investment-grade certification developed by GemShares. Through this index, diamonds that have met the GIGS gemological, proportional, optical and light-behavior guidelines can be securitized for the creation of financial products to be listed and traded on regulated exchanges globally.

"The establishment of the GemShares GIGS Diamond Basket Index will lead to the securitization of diamonds by bringing a new and enhanced level of confidence through the addition of transparency and liquidity to the process of pricing these assets for investment purposes," said Dan Gramza, GemShares Partner. "This partnership is the first step toward creating a significant bridge between the financial and diamond industries that brings the benefits of investing in diamonds to investors around the globe. By opening new channels of distribution, GemShares will enable the diamond industry to reach a broader range of customers and increase revenue."

GemShares was founded in 2007 with the goal of creating a fungible global investment standard for diamonds and gemstones. GemShares was awarded a patent for the GIGS pricing mechanism in August 2012.

"NASDAQ OMX's collaboration with GemShares represents two innovators who are committed to enhancing transparency and providing investment solutions to investors," said John L. Jacobs, Executive Vice President of Global Information Services for NASDAQ OMX. "The introduction of the GIGS™ Diamond Basket Index is another indication we continuously strive to meet demand for a wide variety of investment opportunities through the design of relevant, objective indexes."

Controlling your Duration with Innovative ETFs Updated: 9/5/2013

By: Michael Fabian, NASDAQ OMX Global Indexes Contributor

The volatility in interest rates this year has been particularly troublesome for fixed-income investors. Much of the jump in long-term Treasury bond yields has been due to the quicker than expected improvement in the labor market, thereby putting pressure on the Federal Reserve to begin tapering its asset purchase programs in 2013. The unrelenting rise in stock prices combined with investors pouring assets into equity-oriented funds at a breakneck pace has also put downward pressure on the fixed-income sentiment. This has been a wakeup call for investors to begin paying closer attention to their fixed income holdings, and examine them for potential weaknesses. Investors that own traditional “core” fixed income funds now face a unique set of challenges: continue to hang on as rates creep higher and indexes ultimately rotate to higher yielding bonds, or sell and forego the cash-flow benefit of fixed income altogether?

Investors that have a portfolio made up of individual bond issues have a very different set of concerns than holders of traditional bond funds. This is primarily due to the fact that a fund will continue its duration into perpetuity, as there is no fixed maturity date. It will simply roll short maturity holdings forward based on the investment objectives of the fund. Naturally the advantage to owning a fund is the ease of use and diversification you get for holding just one security within your portfolio. Conversely, the obvious advantages to owning individual bonds is the ability to latter a basket of credits, and then allow them to mature at par. This enables the investor to participate in the income component, yet not get wrapped up in the pricing anomalies in relation to treasury bonds. Furthermore, after maturity, you have the option of either rolling proceeds over to higher yielding bonds if a rising rate environment persists, or just sit in cash to wait out better opportunities.

Several years ago an innovative index-based ETF product was brought to market to satisfy the needs of both individual issue and bond fund investors. The Bulletshares concept is based on a “target-date” fund philosophy, but it utilizes a unique index methodology whereby bonds are grouped together based on their maturity date. As an example, the Guggenheim Bulletshare 2016 Corporate Bond ETF (BSCG) has a constituency of investment grade bonds that will all mature in 2016; when the fund is set to be liquidated at year end. As the bonds mature within the fund, the proceeds will be placed in cash until it finally liquidates and makes a full distribution to its shareholders. The index is inherently designed to represent a “held to maturity” basket of bonds with all the benefits of diversification offered by a fund.

A list of the Bulletshare family of ETFs includes options for both investment grade and high yield:

  • Guggenheim BulletShares 2013 Corporate Bond ETF (BSCD)
  • Guggenheim BulletShares 2014 Corporate Bond ETF (BSCE)
  • Guggenheim BulletShares 2015 Corporate Bond ETF (BSCF)
  • Guggenheim BulletShares 2016 Corporate Bond ETF (BSCG)
  • Guggenheim BulletShares 2017 Corporate Bond ETF (BSCH)
  • Guggenheim BulletShares 2018 Corporate Bond ETF (BSCI)
  • Guggenheim BulletShares 2019 Corporate Bond ETF (BSCJ)
  • Guggenheim BulletShares 2020 Corporate Bond ETF (BSCK)
  • Guggenheim BulletShares 2021 Corporate Bond ETF (BSCL)
  • Guggenheim BulletShares 2022 Corporate Bond ETF (BSMC)
  • Guggenheim BulletShares 2013 High Yield Corporate Bond ETF (BSJD)
  • Guggenheim BulletShares 2014 High Yield Corporate Bond ETF (BSJE)
  • Guggenheim BulletShares 2015 High Yield Corporate Bond ETF (BSJF)
  • Guggenheim BulletShares 2016 High Yield Corporate Bond ETF (BSJG)
  • Guggenheim BulletShares 2017 High Yield Corporate Bond ETF (BSJH)
  • Guggenheim BulletShares 2018 High Yield Corporate Bond ETF (BSJI)

Practical uses within a portfolio can vary, and include the basic buy-and-hold to maturity approach, or even a more sophisticated yield curve positioning strategy. Other uses can even include opportunistically shortening or lengthening duration, while staying in the same fund family to take advantage of prevailing interest rate fluctuations.

When the need arises for even large institutional portfolio managers to target a specific duration and/or credit quality within their portfolios, Bulletshares ETFs offer the convenience of not having to curate an entire bond latter from scratch. This concept opens up the use of Bulletshares to small or medium sized pension funds or defined benefit plans to cut the cost of research and implementation.

With the future of interest rates largely being called into question, investors need to leverage every tool they can to protect capital while still generating income. Reaching outside the bounds of your typical core fixed income fund can have many benefits. However, understanding the risks associated with market price fluctuation, while still having the defined maturity to fall back on is something many investors should take heed to.

Note: As of this writing, the author did not own any securities listed in this article.

To get more investor insights from Fabian Capital, visit their blog here or click here to download their latest special report, The Opportunistic Approach to Growth Investing.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
NASDAQ® and NASDAQ OMX® are registered trademarks of The NASDAQ OMX Group, Inc. 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 or NASDAQ proprietary indexes 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. © 2013. The NASDAQ OMX Group, Inc. All Rights Reserved.

 

Extended Through September: NASDAQ Global Index Family Available FREE on Factset Updated: 9/3/2013

We have extended the offer for all Factset clients to receive free access to the NASDAQ Global Index Family. Factset clients now have through September 30, 2013, to browse and utilize the information at no cost.

The NASDAQ Global Index Family covers 98% of the investible equity marketplace in large-, mid-, and small-cap stocks across Developed and Emerging markets.

“FactSet is pleased to add the NASDAQ Global Index family to our Global Indexing and Benchmark offering,” says Patrick Locke, Vice President, Database Development, FactSet. “This release combines NASDAQ OMX’s Global sector, benchmark and tradable indexes with FactSet’s analytical tools to let clients benchmark and track a broad representation of the global investable marketplace.” Contact us for more information.

First Trust Launches International Multi-Asset ETF Based on NASDAQ Index By: Rob Hughes
on 8/26/2013

On the heels of the recent launch of the NASDAQ International Multi-Asset Diversified Income Index (NQMAXUS), First Trust today launched a new low volatality, high yield exchange-traded product (ETF), the International Multi-Asset Diversified Income Index Fund (Ticker Symbol: YDIV), tracking the index.

Similar to the First Trust U.S. Multi-Asset Diversified Income Fund (MDIV), YDIV provides a diversified strategy with high yield components such as dividend-paying equities, real estate investment trusts (REITs), preferred stocks, infrastructure securities and fixed-income ETFs (represented by EMB, the iShares J.P. Morgan USD Emerging Markets Bond ETF.) With the exception of the fixed income, the asset class segments are generally derived from broad global benchmarks that exclude U.S. securities.

To read more about NQMAXUS, the benchmarking index for YDIV, DOWNLOAD our latest Research piece.

Vanguard Launches Two New Canadian ETFs, Benchmarked to NASDAQ OMX Index By: Rob Hughes
on 8/22/2013

Last week Vanguard listed two new exchange-traded funds (ETFs) on the Toronto Stock Exchange, based on the NASDAQ Dividend Achievers CAD Select Index. The new ETFs, the Vanguard U.S. Dividend Appreciation Index ETF (VGG) and the Vanguard U.S. Dividend Appreciation Index ETF (VGH) represent the expansion of the NASDAQ Dividend Achievers into Canada.

"The launch of these new Dividend Achiever ETFs in Canada is another milestone in the international expansion of investment products tracking NASDAQ OMX indexes," said John Jacobs, Executive Vice President of NASDAQ OMX Global Indexes. "We are continuing to expand our overall index offering and improve our Dividend and Income family of indexes to help global investors benchmark this increasingly important space."

There are now five NASDAQ Dividend Achievers indexes offering exposure to Canadian companies.

NASDAQ Bulletshares-linked ETFs Cross $3B By: Rob Hughes
on 8/5/2013

Announced in June, NASDAQ OMX partnered with Accretive Asset Management (AAM) to co-brand and expand the NASDAQ BulletShares® Indexes, a pioneering and innovative family of target-maturity corporate and high yield bond indexes. Assets of the NASDAQ BulletShares-linked Guggenheim ETFs have grown nearly 60% in 2013 ? from $1.7B as of 12/19/2012 to over $3B as of 8/2/2013.

To put this in perspective, U.S. Fixed Income ETF assets were virtually unchanged YTD through 6/30/13 ($243.1B as of year-end 2012 and $243.6B as of the end of the second quarter in 2013*).By contrast, over this same six-month period, the BulletShares ETFs are up $1B.

"Bulletshares ETF investors recognize the significant advantages of building portfolios using target maturity bond funds that act like a bond. This has pushed Bulletshares ETF assets to its historical high,” said David Krein, Head of Index Research, NASDAQ OMX.

GUGGENHEIM BULLETSHARES® HIGH YIELD CORPORATE BOND ETFS:

  • Guggenheim BulletShares 2013 High Yield Corporate Bond ETF (BSJD)
  • Guggenheim BulletShares 2014 High Yield Corporate Bond ETF (BSJE)
  • Guggenheim BulletShares 2015 High Yield Corporate Bond ETF (BSJF)
  • Guggenheim BulletShares 2016 High Yield Corporate Bond ETF (BSJG)
  • Guggenheim BulletShares 2017 High Yield Corporate Bond ETF (BSJH)
  • Guggenheim BulletShares 2018 High Yield Corporate Bond ETF (BSJI)

GUGGENHEIM BULLETSHARES® CORPORATE BOND ETFS:

  • Guggenheim BulletShares 2013 Corporate Bond ETF (BSCD)
  • Guggenheim BulletShares 2014 Corporate Bond ETF (BSCE)
  • Guggenheim BulletShares 2015 Corporate Bond ETF (BSCF)
  • Guggenheim BulletShares 2016 Corporate Bond ETF (BSCG)
  • Guggenheim BulletShares 2017 Corporate Bond ETF (BSCH)
  • Guggenheim BulletShares 2018 Corporate Bond ETF (BSCI)
  • Guggenheim BulletShares 2019 Corporate Bond ETF (BSCJ)
  • Guggenheim BulletShares 2020 Corporate Bond ETF (BSCK)
  • Guggenheim BulletShares 2021 Corporate Bond ETF (BSCL)
  • Guggenheim BulletShares 2022 Corporate Bond ETF (BSCM)

*Source: BlackRock ETF Landscape reports

 

The Demand for Leveraged ETFs Continues to Multiply By: Rob Hughes
on 7/25/2013

By David Fabian, NASDAQ OMX Guest Contributor

Leveraged ETFs are some of the most widely respected and feared investment vehicles to come to market in the last 10 years. They are lauded by hedge funds, professional investors, and day traders as excellent tools to access a specific index and quickly magnify your returns. However, they have also been derided by traditional Wall Street brokers and media outlets as a dangerous weapon in the hands of unsuspecting investors. Whichever side of the argument for leveraged ETFs that you come down on, you can’t deny the continued demand and success of these sophisticated investment vehicles.

Read the entire article.

Top ETF Industry Trends and Strategies in the First Half of 2013 By: Rob Hughes
on 7/24/2013

In the first half of 2013, just one new ETF/ETP launched in the US joined the exclusive blockbuster or Billion Dollar Club.

Many ETF/ETP managers adjust their product offerings hoping to create and develop best-selling products that will enter the exclusive blockbuster or Billion Dollar Club, a milestone that indicates $1 billion in assets under management. Popular with investors, these are profitable and blockbuster products for firms. At the end of H1 2013, there were 1,478 ETFs/ETPs with assets of $1.44 trillion from 54 providers listed on three exchanges in the United States.

Just 14% or 201 of the ETFs/ETPs listed in the US have joined the exclusive blockbuster or Billion Dollar Club. The top 100 ETFs/ETPs ranked by assets, out of the 1,478, account for just over three quarters of the $1.44 trillion in assets. The top 20 or the top 1% of all ETFs/ETPs ranked by assets account for 40% of all assets.

Read Debbie Fuhr's entire Q1-Q2 recap.

 

DMS Funds Ring NASDAQ Opening Bell Celebrating Launch of U.S. Mutual Fund on Baltic Index Updated: 7/24/2013

In celebration of the launch of the first U.S. Mutual Fund based on the OMX Baltic Benchmark Index, DMS Funds employees joined CEO Peter Kohli to ring the NASDAQ Opening Bell on Tuesday, July 23. The OMX Baltic Benchmark index consists of the largest and most traded stocks on the NASDAQ OMX Baltic Market.

DMS Funds offers mutual funds based on established stock exchange and sector benchmark indexes in emerging and frontier markets.

NASDAQ Global Index Family Expands by 21,000 Indexes Updated: 7/15/2013

Product sponsors, portfolio managers and other market participants now have even more choices when it comes to benchmarks for Global Equities. The NASDAQ Global Index Family is now calculated in USD, AUD, CAD, EUR, GBP, JPY and select local currencies to better meet the needs of the financial community. Totaling over 25,000 indexes, the complete family includes approximately 9,000 securities broken down by market segment, region, country, size and sector. Our rules-based selection criteria ensure that the family is a transparent and investable benchmark for the global equity market.

A differentiator from other global equity offerings is NASDAQ OMX’s segment designation process: NASDAQ OMX first determines and assigns all countries that fall within the Developed Markets segment. Countries that do not qualify for the Developed Markets segment are then reviewed using the criteria for Emerging Markets. View the methodology to learn more about our quantitative and qualitative approach.

"The expansion of the NASDAQ Global Index Family into various currencies underscores our premier global index operation," said NASDAQ OMX Executive Vice President John Jacobs. "We recognized the need for cost-effective benchmark alternatives in multiple currencies. With the addition of these indexes, market participants can more effectively gauge and manage currency exposure as they track global equities."

View the press release.

 New Names in the NDX-100 Updated: 7/15/2013

Recent changes have occurred to the NASDAQ-100 Index. We are excited to welcome the following companies into this well-known large cap index:

  • 6/5/13 Liberty Media Corporation (LMCA) replaced Virgin Media Inc. (VMED)
  • 6/6/13 Netflix Inc. (NFLX) replaced Perrigo Company (PRGO)
  • 7/15/13 Tesla Motors, Inc. (TSLA) replaced Oracle Corporation (ORCL)
  • 7/25/13 Charter Communications, Inc. (CHTR) replaced BMC Software (BMC)

 

Europe’s First Palladium ETP Updated: 7/11/2013

BOOST ETP has launched nine new leveraged and inverse ETPs in the United Kingdom that are based on indexes in the NASDAQ Commodity Index Family. These are the second set of BOOST ETP products linked to this family, bringing the total number of BOOST NASDAQ Commodity Index linked products to 25.

Product                           LSE Code           Leverage Factor 
Boost Palladium 1x Short Daily ETP 1PAS -1x
Boost Palladium 2x Leverage Daily ETP 2PAL +2x
Boost Gold 2x Short Daily ETP                 2GOS -2x
Boost Gold 1x Short Daily ETP                 1GOS -1x
Boost Gold 2x Leverage Daily ETP         2GOL +2x
Boost Silver 2x Short Daily ETP         2SIS -2x
Boost Silver 2x Leverage Daily ETP 2SIL +2x
Boost Natural Gas 2x Short Daily ETP 2NGS -2x
Boost Natural Gas 2x Leverage Daily ETP 2NGL +2x
 
“The introduction of these commodity ETPs reaffirms the success of our index construction and our rules-based, objective and transparent index methodology,” said John Jacobs, NASDAQ OMX EVP and Head of Global Information Services. “BOOST ETP has again succeeded in leveraging our indexes to quickly and efficiently develop innovative products for a wide range of investors.”

Global assets under management for short and leveraged ETPs increased 12% to $49.3 billion this year through May 31, 2013, according to BOOST ETP.

Read our press release, BOOST ETP’s education resources, or visit our Commodity Indexes page for more information.

What Differentiates the NASDAQ Dividend Achievers Indexes? Updated: 7/8/2013

There are many dividend-themed indexes on the market, but each uses different criteria and methodologies. Make sure you’re using the appropriate index for benchmarking. In the latest research piece from NASDAQ OMX Global Indexes, we look at how component selection plays a role in dividend growth.

To read more about how the NASDAQ U.S. Broad Dividend Achievers (DAA), NASDAQ U.S. Dividend Achievers Select (DVG), and NASDAQ U.S. Dividend Achievers 50 (DAY) indexes perform compared to competitors and the broad market, DOWNLOAD our latest reseach piece.

How are Macro Economic Factors Affecting Fund Flows and Benchmark Selection? Updated: 6/28/2013

In this uncertain rate environment, how do you navigate your investment strategies? Do you look for additional yield or lower risk? Do you look for government-backed securities or turn to gold? How do Dividends and Fixed Income strategies play into your investment approach? Join leading ETP expert Deborah Fuhr, Partner and Co-founder of ETFGI, and David Krein, Head of Index Research at NASDAQ OMX, as they discuss how investors are dealing with the potential rate changes, and provide the latest research on fund flows.

Watch the webcast here.

How Rising Interest Rates Affect Your Income Portfolio Updated: 6/25/2013

By David Fabian, NASDAQ OMX Global Indexes Contributor

It has been quite a ride in both the stock and bond markets as the Federal Reserve reiterated its zero interest rate policy and bond buying programs through mid-2014. This announcement and subsequent Q&A session with Fed Chairman Ben Bernanke sent stocks, bonds, and commodities downward as investors reacted to the fears of rising interest rates.  In fact, there was virtually nowhere to hide for income investors as just about every yield producing asset class was bathed in red ink and the 10-Year Treasury Yield Index ($TNX) spiked to new year-to-date highs of 2.4% on Thursday. 

Investors that had been used to conservative returns and low volatility are starting to get nervous about the prospects for their income generating assets moving forward.  That data is confirmed by asset flows from Index Universe which list the iShares TIPS Bond Fund (TIP), iShares Investment Grade Bond Fund (LQD), SPDR Barclays High Yield Bond Fund (JNK), and iShares High Yield Bond Fund (HYG) as four of their top 10 ETFs for asset redemptions in 2013. 

Read the entire article here.

NASDAQ OMX Partners with Accretive Asset Management on BulletShare Corporate Bond Indexes Updated: 6/17/2013

NASDAQ OMX and Accretive Asset Management have partnered to co-brand the innovative BulletShares® Corporate Bond Index family and work jointly to promote these indexes around the world.

The BulletShares Corporate Bond Indexes are the world’s first target-maturity corporate bond indexes. Now called “NASDAQ BulletShares Indexes,” these benchmarks represent the performance of an investment in a diversified, held-to-maturity portfolio of fixed income securities with a common year of maturity. Accretive Asset Management developed the methodology in 2009 with the objective of combining the benefits of individual bonds and bond funds.

NASDAQ BulletShares Corporate Bond Indexes offer a precise way to get the benefit of individual bonds combined with the benefit of funds. Instead of a single bond, these indexes offer exposure to a broad range of investment-grade corporate bonds, which allows for a more diversified approach. Read more about the benefits.

We’re excited to add this family to our fixed income portfolio and offer our customers a broader selection of innovative index solutions. Stay tuned for additional research and announcements!

New FINRA Rule Designates NASDAQ Global Large Mid Cap Index for Rule 2360 Updated: 6/14/2013

Effective June 27, 2013, the Financial Industry Regulation Authority (FINRA) will designate the NASDAQ Global Large Mid Cap Index to serve as an additional index for purposes of calculating position limits on conventional equity options overlying foreign securities, subject to the volume and float criteria outlined by FINRA in Rule 2360. FINRA determined that the designation of this additional index is consistent with the designation of the currently utilized FTSE All-World Index in that the indexes are of similar geographic dispersion and composition including market capitalization sectors of large and mid-cap companies. The NASDAQ Global Large Mid Cap Index is a free-float adjusted market capitalization weighted index designed to include 90 percent of the investable public equity in certain developed and emerging countries, subject to a semi-annual rebalancing schedule.

For more information, refer to the FINRA Regulatory Notice, contact NASDAQ OMX Global Indexes at +1 301 978 8284 or contact NASDAQ OMX Transaction Services U.S. - Derivatives at +1 800 846 0477 (Option #2).

NASDAQ OMX Global Indexes for Pension Consultants Updated: 6/14/2013

Are you a pension consultant looking for a viable alternative to the expensive, well-known industry benchmarks? What if you could provide a new way of saving your clients money without sacrificing reliability and accuracy? We’ve been talking to managers and custodians across the globe and the sentiment is the same — show us some lower cost alternatives that we can trust and help bring fee transparency to investors.

We have done just that. We’ve used our world-renown INET technology to make our reliable, objective and transparent indexes more affordable. Check out our NASDAQ Global Index Family, NASDAQ Dividend and Income Family and the NASDAQ Commodity Index Family and see how they compare to industry incumbents.

Click here for more information specifically for Pension Consultants and learn how NASDAQ OMX is yet again using cutting-edge technology to offer high-quality, lower-cost solutions that are reshaping the market.

NASDAQ to Launch Four New Canadian Dividend Achievers Indexes Updated: 6/13/2013

NASDAQ OMX will launch an additional four Canadian currency Dividend Achiever indexes on Wednesday, June 19th. These indexes will be calculated in Canadian dollars and will access Canadian currency denominated dividend-pairing stocks. The new Canadian Dividend Achievers are:

  • NASDAQ U.S. Dividend Achievers Select Currency Hedged CAD Index (DVGCADH)
  • NASDAQ U.S. Dividend Achievers Select Currency Hedged CAD Total Return Index (DVGTCADH)
  • NASDAQ U.S. Dividend Achievers Select CAD Index (DVGCAD)
  • NASDAQ U.S. Dividend Achievers Select CAD Total Return Index (DVGCADTR)

The new indexes were created off of the Dividend Achievers Select (DVG) index and are a part of the Dividend Achievers, a group of indexes tracking companies with at least 10 years of consecutive dividend growth. The Dividend Achievers are a part of the NASDAQ Dividend and Income Family.

NASDAQ Global Index Family Now Available on Factset FREE through August Updated: 6/13/2013

All Factset clients now have access to the NASDAQ Global Index Family, covering 98% of the investible equity marketplace in large-, mid-, and small-cap stocks across Developed and Emerging markets.

From now until August 31, 2013, all Factset customers have access to this data for FREE.

“FactSet is pleased to add the NASDAQ Global Index family to our Global Indexing and Benchmark offering,” says Patrick Locke, Vice President, Database Development, FactSet. “This release combines NASDAQ OMX’s Global sector, benchmark and tradable indexes with FactSet’s analytical tools to let clients benchmark and track a broad representation of the global investable marketplace.” Contact us for more information.

Low Volatility Is Still In High Demand - Commentary Updated: 6/12/2013

By: David Fabian, Special NASDAQ OMX Global Index Watch Contributor

The first low volatility exchange-traded fund was released in 2011 as the PowerShares S&P 500 Low Volatility Portfolio (SPLV). This ETF quickly garnered billions of dollars in assets as investors sought to diversify their portfolios with a unique equity index strategy that is designed to select stocks with lower price fluctuations. The success of this product quickly led to additional offerings from both PowerShares and iShares in emerging market, international, global, and small/mid-cap stocks.  

The basis behind the strategy for these funds is to take the underlying S&P or MSCI indexes and identify a subset of stocks (typically 80-200) that have the lowest price volatility for the last quarter. What you are left with is a unique portfolio of equities that typically have very steady returns and stable price movement. The make-up of low volatility funds is commonly focused in the areas of consumer staples, utilities, financial, and health care sectors. One additional benefit to a concentrated mix of stocks in these defensive sectors is the above average yield. However, the asset allocation can vary depending on the region or market capitalization of the underlying index.

Read the entire article here.

Changes to the NDX-100 Updated: 6/6/2013

As of June 5th, 2013, Liberty Media Corporation (LMCA) became a component of the NASDAQ-100 Index® (NDX), the NASDAQ-100 Equal Weighted Index (NDXE) and the NASDAQ-100 Ex-Technology Sector Index (NDXX). Liberty Media Corporation, which replaces Virgin Media, Inc. (VMED)is headquartered in Englewood, CO, and has a market capitalization of approximately $12.7B.In addition, Netflix (NFLX) will replace Perrigo Company (PRGO)
 

Japan Weaker, Asia & U.S. Volatile This Week Updated: 5/29/2013

Japan is weaker, Asia and the U.S. are volatile this week as global markets adjust to central bank actions. Asian stocks sold off for the week after a 7% drop in Japanese share prices last Tuesday sparked selling in the region. The sell-off was attributed to the Chinese Purchasing Managers’ Index (PMI) and concerns about the U.S. Federal Reserve changing its current easing policies sooner than expected. While shares recovered some of the gains the following day, stocks in the region have been volatile. The NASDAQ ASPA INDEX (NQASPA) fell 4.9% over the past five days.
 
“Markets that are fueled to some degree by central banker actions can be subject to quick reversals with sudden changes in sentiment, especially if the underlying fundamentals have not been altered by the central bank’s actions,” said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. “The sell-off in Japan last week is evidence of the velocity of moves in stocks, even if news is presumed to be priced in. With that being said, Japan’s outsized move did not have a significant impact on other markets, as the U.S. remained relatively flat during this period.” 
 
For a look at the top weekly index movers, top five equity indexes, top five commodity indexes and other notable index moves, click here.

Green Economy Stocks Lead Market to New Highs; Precious Metals are at 2.5 Year Lows Updated: 5/22/2013

Strong earnings reports from key companies in the Green Economy sparked a rally in the NASDAQ OMX Green Economy Index (QGREEN) this week, leading equities markets higher. Meanwhile, silver and gold remained under pressure with the PHLX Gold/Silver Sector Index (XAU), a measure of gold and silver mining stocks, dropping 3.8%.

”Precious metals have experienced volatile trading this week, dropping to its lowest level in two and a half years,” said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. “Changing inflation expectations and sustained strength in the U.S. Dollar has curbed the demand for gold and silver as a long-term investment vehicle.” 

For a look at the top weekly index movers, top five equity indexes, top five commodity indexes and other notable index moves, click here.

IBB Leads Biotech ETF Inflows By: Rob Hughes
on 5/21/2013

Investor inflows into exchange traded funds (ETFs) tracking the biotechnology sector have surged as the share prices of biotech companies make a record breaking start to 2013. According to FT.com, the largest vehicle in the sector, the iShares NASDAQ biotechnology fund (IBB), based on the NASDAQ Biotechnology Index (NBI), has registered inflows of $311.5M so far this year, already surpassing the $287.8M it gathered over the whole of 2012.

IBB has risen 32.6 percent this year, outperforming the second largest fund in the sector, State Street’s SPDR S&P biotech ETF, known as XBI, which is up 25.2 per cent. XBI has attracted $40.8m in new inflows in 2013, up from $24.9m over the whole of last year.

Biotech and Housing Stocks Continue to Lead the Market Higher Updated: 5/15/2013

U.S. stocks have continued to move higher, with all-time closing highs in the Dow Jones Industrial Average and S&P 500 indices yesterday. Biotechnology stocks have been particularly strong, as have home builders and healthcare stocks. The NASDAQ BIOTECHNOLOGY INDEX (NBI) was up 6.6% over the past 5 days and is up over 35% year-to-date.

"Biotech stocks have been helped by signs of a more accommodating U.S. approvals process and several companies reporting positive news. The tailwinds from the recent market rally are helping the sector as investors look to allocate funds to non-defensive sectors," said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. "The housing sector stocks were strong again this week, with a gain of almost 3% after a 4.4% rise last week."

For a look at the top weekly index movers, top five equity indexes, top five commodity indexes and other notable index moves, click here

China's 1st Cross-Border Exchange-Traded Fund Launches By: Rob Hughes
on 5/15/2013

The very first cross-border exchange-traded fund (ETF) in China launched on May 15. The ETF will be based on the NASDAQ-100 Index, providing Chinese investors access to 100 of the world's largest and most dynamic non-financial companies, based on market cap.

This is a significant milestone both for the growing global ETF landscape and for the increasing diversification of China's capital markets. The China Securities Regulatory Commission, the Shanghai Stock Exchange and Guotai Asset Management have paved the way for individual and institutional investors in China to trade an innovative investment solution that has not been previously available.

The Guotai NASDAQ-100 Exchange Traded Fund is listed on the Shanghai Stock Exchange.

We couldn't be more pleased with this development as a testament to NASDAQ OMX's prominence in the region. Read the press release, or visit our website to view the NASDAQ-100's performance history.

Two ETFs Based off of NASDAQ Indexes Ranked Among Top ETFs in 2013 Updated: 5/13/2013

Index Universe named the First Trust NASDAQ Clean Edge Green Energy ETF (NASDAQ: QCLN) and the iShares NASDAQ Biotechnology Index Fund (NYSEArca: IBB) two of the best ETFs in 2013. According to the publication, QCLN  is challenging the db X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP) for first position in a tally of top-performing ETFs year-to-date, with gains of 37.3 percent, and all of that linked to shares of Tesla, the luxury electric sports car maker. QCLN is based off of the NASDAQ Clean Edge Green Energy Index

IBB, the biggest and oldest biotech-focused ETF in the market, has $3.15 billion in assets gathered since its 2001 launch and has tagged on gains of 27.45 percent year-to-date, making it the ninth-best-performing ETF of 2013 so far, according to the article. It goes on to say "IBB is rising as successful treatment launches and what some see as a more 'accommodating' U.S. approvals process for new drugs fuel the biotech sector." IBB is based off of the NASDAQ Biotechnology Index

Read the entire article here.

Buyback ETF Based on NASDAQ Buyback Achievers is Outperforming the Market By: Rob Hughes
on 5/7/2013

The PowerShares BuyBack Achievers Portfolio (PKW) has been one of the best performing ETFs on the market, writes Jordan Wathen for The Motley Fool.

According to ETF Trends, year-to-date, the ETF has gained 15.7% compared to the 11.7% increase in the S&P 500. Stock components in the Powershares ETF are slightly less volatile than the S&P 500, and the ETF has consistently beaten the broad index.

PKW tries to reflect the performance of the NASDAQ Buyback Achievers Index (DRB), which is comprised of stocks that have repurchased at least 5% of their total shares outstanding over the past year and is weighted by market cap.

Read more from ETF Trends.

Read more about the DRB here.

NASDAQ  OMX Joins BOOST ETP and IMC for ETPs Seminar By: Rob Hughes
on 4/30/2013

Dave Gedeon, NASDAQ OMX’s Head of Research, will present “Commodities and Equities — The Changing Relationship” at the BOOST ETP/APCIMS CPD Manchester Regional Seminar, on Wednesday, May 1, 2013, at the Brewin Dolphin offices. This free event, which is CPD certified, will be the first of several Boost ETP regional seminars.

The seminar focuses on the current climate of the ETF market and provides insight into what industry specialists think the sector holds for investors.  In addition to Gedeon, Rick van Leeuwen, ETF Sales Trading at IMC will present on “ETFs – What to Look Out For” and Hector McNeil, Co–CEO at Boost ETP, will present on “ETFs & ETPs – The Next Generation.”

The free Boost ETP CPD-certified Regional Seminar will also be held in Jersey on May 16, 2013; Birmingham on May 23, 2013; Leeds TBC; and Edinburgh TBC. Visit www.boostetp.com for more information.

Boost ETP has a dozen products based off of NASDAQ OMX Global Indexes. 

Green Economy Continues to Grow Updated: 4/22/2013

2012-2013 are big years in the transition to a Green Economy, though mainstream media headlines may not reflect it. While many focus on the boom in natural gas, the growth in wind and solar are certainly deserving of similar headlines. Record-breaking installations over the past few years have boosted renewable energy as the supplier of almost 16% of U.S. electrical generating capacity, more than nuclear and oil combined.

In March 2013, renewable energy accounted for 100% of all new electrical capacity in the U.S., and 82% for the first quarter as a whole. 1546 megawatts (MW) of renewables came online, compared to 340 MW of natural gas — according to the Federal Energy Regulatory Commission (FERC), in the form of six wind farms (958 MW), 38 solar farms (537 MW) and 28 biomass plants (46 MW). The solar added is more than double that of the first quarter last year. In 2012, renewables accounted for almost half of all new electrical generating capacity — 46.22%. And this doesn’t count the growth of small rooftop solar systems.

Read the entire article here.

Written by: Rona Fried, Ph.D. is CEO of SustainableBusiness.com, providing green business news and green jobs online since 1996. She builds the universe of eligible components based on the index methodology for NASDAQ’s Green Economy Index.

Will the Green Sector See an UpSwing? Updated: 4/19/2013

The Green Economy, broadly comprised of companies committed to renewable energy production, energy management, sustainable farming, resource harvesting and other segments, saw its last peak in price valuation at the end of 2007. This sector performance was extremely strong, showing outsized gains versus the broad market in the equity rally of 2005 to 2007.

While the market as a whole severely declined in 2007 and 2008, the Green indexes lost an even larger percentage of value than other sectors. Between June 2008 and June 2009 the NASDAQ U.S. Benchmark index (NQUSB) went down 27.43% while the NASDAQ Green Index (QGREEN) decreased 36.18%. NQUSB recovered and has gained nearly 75% since June 2009, while the Green index gained 46.83%. However, some sectors within the Green Economy continued to decline; the NASDAQ OMX Generation Index (GRNREG) lost an additional 41.88% after the broad equity market bottom in March 2009.

During that time, losses continued and outflows on green-related exchange-traded products (ETPs) increased, even as broad market equities were gaining significantly.

Just recently though a sliver of green has been seen in the index performance of the green sectors and it appears a bottom has finally been achieved. September 2012 marked the lowest point for the broad Green index and many of its sector indexes. Since that lowest level, the indexes have strongly rallied:

Many of the indexes within the broad green economy are now outperforming the broader U.S. market.

Welcome SLVO Updated: 4/17/2013

NASDAQ OMX is proud to welcome a new Silver ETP, the CreditSuisse Silver Shares Covered Call Exchange Traded Note (SLVO). SLVO will track to the CreditSuisse NASDAQ SilverFLOWS106 Index (QSLVO).

SLVO gives investors an opportunity to add physical silver shares to their investment portfolio through a covered call strategy. In this approach income is generated from premiums paid by call options on long positions. This ETN is similar to the CreditSuisse Gold Shares Covered Call ETN (GLDI) that launched on NASDAQ last quarter.

The SilverFLOWS106 Index can be found in the NASDAQ Dividend and Income Index Family,

IBB ETF Rallies to All-Time High; Doubles S&P 500 Return Updated: 4/12/2013

The IBB (iShares NASDAQ Biotech, Expense Ratio 0.48%), the largest ETF in the biotech category, has surged this week to trade at a new all-time highs this morning. According to ETF Trends, IBB’s performance this year alone has more than doubled that of the S&P 500. The performance of the top holdings in IBB (REGN, GILD, AMGN and CELG) are leading the way for this ETF as the sector continues to do well. Read more from ETF Trends.

Celebrate the 100th day of the year with a look at the NASDAQ-100 Updated: 4/10/2013

Today marks the 100th day of the year, so we’re celebrating with a nod to the NASDAQ-100®, one of the most popular indexes in the global economy.

NDX is comprised of the 100 largest non-financial securities listed on The NASDAQ Stock Market® (NASDAQ®), based on market capitalization, and is a barometer for large cap growth. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology.

The NASDAQ-100 contains the household names leading the new economy forward. Among the top holdings: Apple (AAPL), Microsoft (MSFT), Google Inc. (GOOG), Oracle Corporation (ORCL) and Amazon.com Inc. (AMZN).

The fundamental data behind NDX has drastically improved over the past few years despite a volatile economy and the greatest financial market collapse since the Great Depression.

As of year-end, earnings, the most basic number to value a company, have skyrocketed, showing maturation of the companies as they increase revenues but reduce costs. Costs have been controlled, shares were bought back, dividends have increased and P/E has contracted.

The shift in fundamentals of the NASDAQ-100 has resulted in significant outperformance over other US large cap indexes over time. Click here to see how NDX has performed these past 100 days. Also see PowerShares‘ QQQ ETF (QQQ)

A Diversified ETF Yielding Nearly Six Percent Based off of NQMAUS By: Rob Hughes
on 4/8/2013

According to an article in today's ETF Trends , MDIV (First Trust Multi-Asset Diversified Income, Expense Ratio 0.60%) is one of the best performers year to date in the category, and volume has swelled to more than 213,000 shares on an average daily basis. The ETF is making a name for itself in a little under a year of live trading history. It fits into the “Multi-Asset” or “Diversified Portfolio” categories.

According to the article, "...the ETF is challenging all-time highs as volume has certainly stepped up in the past month or so, and this product is designed to track the NASDAQ Multi-Asset Diversified Income Index, which invests in a broad array of income producing securities (read yield), including domestic and internationally listed equities, REITS, MLPs, preferred stocks as well as a household name ETF, HYG (iShares High Yield Corporate Bond, Expense Ratio 0.50%)."

Sector Analysis: Technology Dividends Updated: 4/8/2013

Technology stocks and dividends were not synonymous just a few years ago. As the technology secotr has matured with increases in earnings, cash holdings, and stable levels of debt, returns to shareholders with dividend payments have substantially increased. In Q2 2013, Apple, the world’s largest company by market capitalization, will join the ranks of dividend payers by reinstating dividend payments; yield is expected to be around 1.8%. Apple joins other major technology names like Microsoft, Cisco and Intel, who have become strong dividend players over the years.

The tech dividend story is not limited to a handful of names; the entire sector has seen significant growth in dividend payments and was the fastest growing sector of dividends paid in the past five years.

Between 2005 and 2012, the technology sector of the NASDAQ U.S. Benchmark Index has increased its dividend value paid out by 326%. The next closest sector is Consumer Services at 139%.

The gains in the Technology sector dividend payments have also been more consistent compared to other sectors. The financial sector experienced rapid increases with a 33% increase between 2005 and 2008, but then a large 55% decline between 2008 and 2012.

Technology companies have been able to maintain and increase dividends due to the cash flows generated from their businesses. Looking at cash and marketable investments on hand, technology is the second largest sector behind financials with $58 billion. Technology companies have significant cash holdings and minimal creditors and as such are in the best position, compared to other sectors. Read the full report here

The Golden Touch - Gold ETPs Turn 10 Years Old Updated: 3/28/2013

Today, March 28, 2013, is the 10th anniversary of the 1st ever Gold ETP. Since the first one debuted in 2003, Gold prices have risen 376% - an outstanding mark compared to the performance of most equities over the same period.

There are now over 50 physically backed gold ETPs in existence that trade around $2 billion per day on global exchanges. Gold ETPs have opened up the investing world in many ways: allowing investors to “own” physical gold without spreads and entry/exit charges, bringing commodity and equity markets together, and establishing uncorrelated returns.

Recently Gold ETPs have been experiencing record outflows, which has brought to market many short and leveraged Gold ETPs to help leverage the volatility. Two of these are the Boost Gold 3x Leverage Daily ETP (3GOL) and the Boost Gold 3x Short Daily ETP (3GOS), both of which track to the NASDAQ Commodity Gold Index (NQCIGCER).

Visit the NASDAQ Commodities Gold Index page or the Boost ETP page to learn more.

Source: Boost ETP

Neither the NASDAQ OMX Group, Inc nor any of its affiliates (collectively "NASDAQ OMX") makes any recommendations to buy or sell any security or any representation about the financial condition of any company. Investors should undertake their own due diligence and carefully evaluate companies before investing.

How Will Sequestration Affect the Defense Sector? Updated: 3/26/2013

Sequestration, a process that automatically cuts the federal budget across most departments and agencies, took effect on Friday, March 1, 2013, as Congress and President Obama failed to reach an accord. The $1.2 trillion in cuts will be phased in with half the cuts focused on the Department of Defense (DoD) budget. The first phase of the cuts in 2013 will remove $85 billion, which pulls $46 billion from the DoD budget.

Sequestration has been in the news for months as the public has speculated that Congress would be unable to prevent these large scale cuts. Yet the equity markets were not negatively impacted, and we’ve seen a strong start to 2013. In fact, the NASDAQ U.S. Benchmark Index (NQUSB) has gained 6.71% since January 1, and the individual sector with the highest exposure to the government cuts, Defense, has also faired exceptionally well with a gain of 6.90%. Will the Defense sector be able to maintain its performance streak into 2013 as these cuts begin to be implemented?

Follow the PHLX Defense Sector in the days and months to come to track the impact of government spending cuts on the sector most impacted.

Nasdaq Indexes

Meet the NASDAQ Dividend and Income Index Family Updated: 3/25/2013

As an investor you’re looking to make the most of your portfolio. The new NASDAQ Dividend and Income Index Family tracks securities that generate income just for that reason. These companies create value through dividends, buybacks, preferred shares and other income-generating strategies.

Visit the new page, dedicated just to these indexes: http://www.nasdaqomx/incomeindexes

NASDAQ OMX Celebrates World Water Day - March 22, 2017 Updated: 3/23/2013

World Water Day brings awareness to our most precious natural resource, so it’s only fitting that we highlight the NASDAQ OMX U.S. Water Index, which tracks companies who conserve,purify, treat and distribute water.

The NASDAQ OMX U.S. Water Index (GRNWATUSL) has 26 of its 28 companies tracking positive returns from the start of this year through 3/20/2013. In that same period, the index has also outperformed the S&P 500 by 2.35%. Year-over-year GRNWATUSL beat the S&P 500 by 11.5%.

While the water segment was hit hard by the financial crisis, the NASDAQ OMX U.S. Water index has fully recovered and is now hitting all-time highs*. The risk factors for the index have also begun to diminish, with 3-month volatility at its lowest levels since 2007– going below 15% in October 2012 and averaging 13% to date through 2013. The realized volatility of the U.S. Water index is now in line with the broader market, something that has not been seen for some time.

NASDAQ® and NASDAQ® are registered trademarks of The NASDAQ Group, Inc. 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 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 or NASDAQ proprietary indexes 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.

© 2015. The NASDAQ Group, Inc. All Rights Reserved.

Loading...
Account Sign In