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KBW Announces Index Rebalancing for Fourth-Quarter 2018

NEW YORK, Dec. 14, 2018 (GLOBE NEWSWIRE) -- Keefe, Bruyette & Woods, Inc., a full‐service, boutique investment bank and broker‐dealer that specializes in the financial services sector, and a wholly owned subsidiary of Stifel Financial Corp. (SF), announces the upcoming index rebalancing for the fourth quarter of 2018.

This quarter there are constituent changes within six of our indexes, including the KBW Nasdaq Capital Markets Index (Index Ticker: KSX), the KBW Nasdaq Financial Sector Dividend Yield Index (Index Ticker: KDX), the KBW Nasdaq Financial Technology Index (Index Ticker: KFTX), the KBW Nasdaq Global Bank Index (Index Ticker: GBKX), the KBW Nasdaq Premium Yield Equity REIT Index (Index Ticker: KYX) and the KBW Nasdaq Property & Casualty Insurance Index (Index Ticker: KPX). 

There are a number of changes to the two modified-dividend-yield-weighted indexes – KDX and the KYX – to adjust annually for relevant dividend yields and ensure the integrity of these indexes.  Both KDX and KYX are specifically constructed to include those eligible companies with competitive dividend yields. 

These  changes  will  be  effective  prior  to  the  opening  of  business  on  Monday, December 24, 2018.

As part of this rebalancing, below are the component level changes across various indices:  

KBW Nasdaq Capital Markets Index (Index Ticker: KSX)

Add (2):           KKR & Co., Inc. (KKR)
                        Jefferies Financial Group Inc. (JEF)

Delete (1):       Piper Jaffray Companies (PJC)

PJC failed to meet the minimum monthly average daily trading volume requirement for continued inclusion.

KBW Nasdaq Financial Sector Dividend Yield Index (Index Ticker: KDX; ETF Ticker: KBWD)

Add (15):        Aircastle Limited (AYR)
                        ARMOUR Residential REIT, Inc. (ARR)
                        FS Investment Corporation (FSIC)
                        Hanmi Financial Corporation (HAFC)
                        Invesco Mortgage Capital Inc. (IVR)
                        Legg Mason, Inc. (LM)
                        MFA Financial, Inc. (MFA)
                        Moelis & Company (MC)
                        Monroe Capital Corporation (MRCC)
                        New York Mortgage Trust, Inc. (NYMT)
                        Oxford Square Capital Corp. (OXSQ)
                        Principal Financial Group, Inc. (PFG)
                        Two Harbors Investment Corp. (TWO)
                        Umpqua Holdings Corporation (UMPQ)
                        Waddell & Reed Financial, Inc. (WDR)

Delete (12):     Apollo Commercial Real Estate Finance, Inc. (ARI)
                        HCI Group, Inc. (HCI)
                        Maiden Holdings, Ltd. (MHLD)
                        Medley Capital Corporation (MCC)
                        Newtek Business Services Corp. (NEWT)
                        Northwest Bancshares, Inc. (NWBI)
                        Old Republic International Corporation (ORI)
                        PennyMac Mortgage Investment Trust (PMT)
                        Prospect Capital Corporation (PSEC)
                        Stellus Capital Investment Corp. (SCM)
                        United Bankshares, Inc. (UBSI)
                        Virtu Financial, Inc. (VIRT)

MHLD and MCC failed to meet the minimum price requirement for continued inclusion.

KBW Nasdaq Financial Technology Index (Index Ticker: KFTX, ETF Ticker: FTEK.LN)

Add (1):          CoStar Group, Inc. (CSGP)

Delete (1):      USA Technologies, Inc. (USAT)

USAT failed to meet the minimum market capitalization requirement for continued inclusion.

KBW Nasdaq Global Bank Index (Index Ticker: GBKX)

Delete (2):       Nordea Bank (Stockholm:NDA)
                        The Royal Bank of Scotland Group PLC (RBS)

KBW Nasdaq Premium Yield Equity REIT Index (Index Ticker: KYX; ETF Ticker: KBWY)

Add (10):        Bluerock Residential Growth REIT, Inc. (BRG)
                        Brixmor Property Group, Inc. (BRX)
                        City Office REIT, Inc. (CIO)
                        Gaming and Leisure Properties, Inc. (GLPI)
                        Omega Healthcare Investors, Inc. (OHI)
                        Preferred Apartment Communities, Inc. (APTS)
                        RLJ Lodging Trust (RLJ)
                        Summit Hotel Properties, Inc. (INN)
                        Uniti Group Inc. (UNIT)
                        VEREIT, Inc. (VER)
                                   
Delete (9):       Ashford Hospitality Trust, Inc. (AHT)
                        Chesapeake Lodging Trust (CHSP)
                        Farmland Partners Inc. (FPI)
                        Franklin Street Properties Corp. (FSP)
                        Gladstone Commercial Corporation (GOOD)
                        Medical Properties Trust, Inc. (MPW)
                        RPT Realty (RPT)
                        SITE Centers Corp. (SITC)
                        Tanger Factory Outlet Centers, Inc. (SKT)

AHT failed to meet the minimum price requirement for continued inclusion.

GOOD failed to meet the monthly average daily trading volume requirement for continued inclusion.

KBW Nasdaq Financial Property & Casualty Insurance Index (Index Ticker: KPX, ETF Ticker: KBWP)

Add (1):           Universal Insurance Holdings, Inc. (NYSE:UVP)

Delete (1):       Argo Group International Holdings, Ltd. (ARGO)

ARGO failed to meet the monthly average daily trading volume requirement for continued inclusion.

Several of the KBW Nasdaq indices have tradable exchange‐traded funds licensed: KBW Nasdaq Bank Index (Index Ticker: BKXSM, ETF Ticker: KBWBSM); KBW Nasdaq Capital Markets Index (Index Ticker: KSXSM); KBW Nasdaq Insurance Index (Index Ticker: KIXSM); KBW Nasdaq Regional Banking Index (Index Ticker: KRXSM, ETF Ticker: KBWRSM); KBW Nasdaq Financial Sector Dividend Yield Index (Index Ticker: KDXSM, ETF Ticker: KBWDSM); KBW Nasdaq Premium Yield Equity REIT Index (Index Ticker: KYXSM, ETF Ticker: KBWYSM); KBW Nasdaq Property and Casualty Insurance Index (Index Ticker: KPXSM, ETF Ticker: KBWPSM); KBW Nasdaq Global Bank Index (Index Ticker: GBKXSM); KBW Nasdaq Financial Technology Index (Index Ticker: KFTXSM, ETF Ticker: FTEK.LNSM).

Not all of the listed securities may be suitable for retail investors; in addition, not all of the listed securities may be available to U.S. investors. European investors interested in FTEK LN can contact Invesco at https://etf.invesco.com/gb/private/en/product/invesco-kbw-nasdaq-fintech-ucits-etf-acc/trading-information. U.S. investors cannot buy or hold FTEK LN. An investor cannot invest directly in an index.

About KBW
KBW (Keefe, Bruyette & Woods, Inc., operating in the U.S., and Stifel Nicolaus Europe Limited, also trading as Keefe, Bruyette & Woods Europe, operating in Europe) is a Stifel company. Over the years, KBW has established itself as a leading independent authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors. Founded in 1962, the firm maintains industry‐leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading in equities securities of financial services companies.

Media Contact
Neil Shapiro, (212) 271-3447
shapiron@stifel.com