News

Salomon Smith Barney Helps Index Competitor

Salomon Smith Barney (SSB) has launched what may be one of the first global
indexes intended as an independently created extension of a competing provider’s
index.

News

Stoxx Claims Market Share Win

Stoxx Ltd., the European equities index compiler and affiliate to Dow Jones
Indexes, thinks it is winning the market share battle in Europe for pan-European
and Eurozone (i.e. EU countries only) derivatives trading.

Articles

Indexed Portfolios and Options

The author reviews the major pluses and minuses of using futures contracts to track an index in a passive portfolio and concludes the balance is heavily in favor of the pluses. He goes beyond futures to describe a strategy for outperforming the benchmark index using options.

Articles

Diversity-Weighted Equity Indexes

Diversity weighting, the author’s alternative to capitalization weighting, should add 45 basis points per year to returns on average, by his calculation. After 1998, when the U.S. equity markets became concentrated in a small number of the largest companies to a historic degree, this method might have even greater potential value if there is regression toward the historical mean.

News

Russell 2000’s 1999 Renewal Wins Managers’Cheers

By the second week in July, the Russell 2000 index received the final touches in its annual makeover.

The small-stock benchmark gained a variety of new issues and, as expected, saw many highflying Internet stocks graduate to the Russell 1000 large-capitalization index. The Russell indexes are adjusted once a year on June 30, partly to push out of the Russell 2000 those stocks that have gotten too big to be "small."

Any stock with a market capitalization below $1.5 billion is generally considered small-cap.

News

FTSE EStars

Financial Times Stock Exchange International entered the post-euro European benchmark melee on June 14 with the launch of its FTSE EStars index.

News

Amex: The Indexes Exchange?

It’s beginning to look like one. The first index-based unit investment trusts
to trade on the American Stock Exchange were the Standard & Poor’s Depository
Receipts, or SPDRs, in 1993.

News

Dow Jones’ AP/ELS Under Way

On July 27, Dow Jones Indexes launched its Asia Pacific Extra Liquid Series (AP/ELS), which currently includes indexes based on Australia, Hong Kong and Japan.

Dow Jones AP/ELS is a set of equity indexes designed for retail and institutional investors seeking index-linked investments in the Asia Pacific region. The indexes are constructed using the largest, most liquid stocks in each country's market. They were designed with the assistance of the Sydney Futures Exchange (SFE).