NYSE Euronext Rolls Out New Index - Analyst Blog

The launch of NYSE Euronext, Inc.’s (NYX) 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.

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 forward.

NYSE Euronext currently carries a Zacks Rank #3 (Hold). Among other financial market operators, FleetCor Technologies Inc. (FLT) carries a favorable Zacks Rank #1 (Strong Buy) while OTC Markets Group Inc. (OTCM) and CIT Group Inc. (CIT) carry a Zacks Rank #2 (Buy) and appear impressive.

CIT GROUP (CIT): Free Stock Analysis Report

FLEETCOR TECH (FLT): Free Stock Analysis Report

NYSE EURONEXT (NYX): Free Stock Analysis Report

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