The launch of
NYSE Euronext, Inc
) new securities index, Diversified High Income Index (NYDVHI)
symbolizes the company's newest endeavor for enhancing customer
confidence. However, the stock price did not react positively to
the product launch owing to broader market conditions.
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The product launch aims to endow investors with the opportunity
to manage their investments strategically i.e. investors will be
able to invest in high dividend-paying securities benefiting from
the index's securities evaluation.
The new index is specifically designed to evaluate the
performance of 138 publicly traded securities that pay high
dividends and provide exposure to multiple asset classes
(including equities, bonds etc.) and sectors. The stocks within
this basket must satisfy certain decisive factors like a certain
dividend yield and frequency, liquidity criteria and other
eligibility requirements. The new index has two primary aspects.
The first one is its brilliant construction that works to
emphasize the yield of stocks. The second one is its
diversification feature that is helpful in minimizing volatility
of the securities.
NYSE Euronext specializes in developing proprietary indices to
evaluate the performance of stocks. It currently boasts of a 750
benchmark indices. NYSE Euronext's equities markets consisting of
the New York Stock Exchange, NYSE Euronext, NYSE MKT, NYSE
Alternext and NYSE Arca comprises of about one-third of the
world's equities trading. The introduction of this new index is
an enhancement to its already high profile as it fortifies the
company's capacities to measure the performance of listed
securities and at the same time reduce volatility. We believe the
launch of this index to help NYSE Euronext to gain investor
confidence so as to procure more investors using its index going
NYSE Euronext currently carries a Zacks Rank #3 (Hold). Among
other financial market operators,
FleetCor Technologies Inc.
) carries a favorable Zacks Rank #1 (Strong Buy) while
OTC Markets Group Inc.
CIT Group Inc.
) carry a Zacks Rank #2 (Buy) and appear impressive.