Indexes

Six Month Update: Nasdaq Acquisition of Dorsey Wright

Dorsey Wright Six Month Chart

This month marks six months since The Nasdaq OMX Group, Inc. (Nasdaq) acquired Dorsey, Wright & Associates, LLC (Dorsey Wright), a leading advisor to the professional financial community, and pioneer in data analytics, and smart beta strategies.

"Since acquisition in February, growth in the Nasdaq-Dorsey Index-linked products has been exceptional,” said Dave Gedeon, Vice President, Nasdaq Global Information Services. “DWA is a tremendous asset for us as we ramp up our service offering to the financial advisor community. Our Smart Beta suite now encompasses a robust offering of multi-factor strategies for a wide variety of investment needs. Even with this growth, we remain committed to our development efforts to further enhance the Nasdaq Index family."

Since the acquisition, AUM in the three most popular Dorsey index-based ETFs has grown substantially:

Dorsey Wright Six Month Chart

Tammy DeRosier, President & COO of Dorsey Wright, recently sat down with Investor’s Business Daily’s Aparna Narayanan to discuss Relative Strength — a cornerstone of DWA’s methodology — and how it works within the indexes that underlie PowerShares DWA Momentum suite of ETFs and the two First Trust Focus 5 funds. "The wonderful thing about momentum, or relative strength investing, is that it is a systematic and rules-based system that fits perfectly in the ETF structure...Conditions for momentum stocks have been much more favorable recently, so we are very happy with where we are sitting. The performance spread between leading and lagging stocks has started to move upward again after a long period of sideways movement. Whenever the spread moves higher, our strategies have greater potential to outperform," DeRosier commented.

Read the entire article here.

For more information about Nasdaq Global Indexes including Dorsey, Wright & Associates, click here and a member of our team will contact you or visit our web site.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.