In a trend that was perhaps started by Wired magazine’s Wired Index (see
Indexes, Issue 1), which represents what its creators term the "new economy,"
two other media presences have taken it on themselves to develop indexes that
represent the US economy.
Fortune magazine isn’t the only new entry to hop on the Internet index
train. At least one more major Wall Street firm is piling on.
Indexes aimed at various segments of the market, e.g. Internet stocks or small
caps, have been steadily multiplying in number in recent years thanks to contributions
from the major index providers and indexing’s popularity boom.
The London Stock Exchange has created a new market specifically designed for
investment products. The first products to be traded on extraMARK are expected
to be exchange traded funds (ETFs).
J.P. Morgan Securities Ltd. launched an index for European credit default swaps,
known as the ECSI, on March 1.
FTSE International has been making some changes lately to keep up with the
ever-shifting market and the ever-changing needs of investors.
Passively managed exchange-traded funds based on equity indexes, in particular
SPDRs and Diamonds, have become a fixture in the investment world, and so popular
they were literally the salvation of the once-moribund American Stock Exchange
(see Indexes, Jul.-Sep. 1999).
Morgan Stanley Capital International will catapult China to around 10% of MSCI's
main regional index from less than 1% currently.
|2000 World Index Returns||In US$|