FTSE Group and Nasdaq Stock Market today launched the FTSE Nasdaq index series, which includes the new FTSE Nasdaq 500, consisting of the 500 largest Nasdaq companies based on market capitalization, officials of the firms announced. They expect the first money managers to license the new series to create index funds, ETFs and other investment products by the end of September, said Mark Makepeace, FTSE CEO.
The index series comprises four indexes with components selected from the Nasdaq Composite index and weighted by market capitalization. The cumulative back-tested returns of prices only for the five years ended last Dec. 31 were -56.2%for the FTSE Nasdaq 500; -59.2% for the FTSE Nasdaq Large Cap; -36.9% for the FTSE Nasdaq Mid Cap; and 12.4% for the FTSE Nasdaq Small Cap, according to a FTSE and Nasdaq study. By comparison, for the same period, the cumulative price-only Russell 1000 returned -15.2%; the Russell 2000, 28.9%; and the Russell 3000, -12.6%, according to Russell.
The indexes will be rebalanced every November, Mr. Makepeace said, although if they have sufficient market capitalization, initial public offerings could gain entry as soon as they begin trading on the Nasdaq.
Separately, KLD Research & Analytics on Wednesday launched the KLD Global Climate 100 index, a stock index made up of companies KLD expects will provide near-term solutions to global warming. "The Global Climate 100 includes companies making meaningful contributions to the commercialization of renewable energies such as solar and wind, future fuels such as natural gas and hydrogen, and innovations or applications of new technologies that help to reduce emissions of greenhouse gases," Peter D. Kinder, founder and president of KLD, said in a news release.
KLD developed the index with the Global Energy Network Institute, a non-profit research and education organization.