NASDAQ OMX Group’s (NDAQ) NASDAQ OMX Global Indexes today announced the launch of two new indices – the NASDAQ IBIS Focused Growth Index (NQIBIS); and the NASDAQ IBIS Focused Growth Total Return Index (NQIBIST).
The NASDAQ IBIS Focused Growth Index will hold exchange traded funds that hold U.S. large- and small-caps as well as developed and emerging markets equities.
“The selection of assets is determined through a proprietary technology for Relative Strength. During periods of weakness across global equity markets, the Index will shift into either short-term, medium-term, or long-term U.S. government bonds, depending upon prevailing interest rates,” according to the index’s web site.
“These new indexes offer the unique viewpoint of accessing an absolute return strategy, while maintaining a rules-based and rigorous selection process,” said Dave Gedeon, Managing Director of NASDAQ OMX Global Indexes, in a statement. “Partnering with IBIS Capital allows the market to benefit from both the tactical allocation models and rules-based index tracking.”
NASDAQ OMX Global Indexes is the index provider for popular ETFs such as the Vanguard Dividend Appreciation ETF (VIG) , PowerShares International Dividend Achievers Portfolio (PID) and the First Trust NASDAQ Technology Dividend Index Fund (TDIV) . [Dividend Achievers Indices Deliver for Investors]
The statement did not say if the new indices will be linked to ETFs.
NASDAQ IBIS Focused Growth Index
Chart Courtesy: NASDAQ OMX Global Indexes
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.