NASDAQ Index Blog - Posts with tag of "Asia"

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.

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.

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.

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.

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