Partners With ETRE Financial to Create New Methodology for 12 Real Estate Indexes
The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) and ETRE Financial, LLC (ETRE) today announced a new partnership in the Real Estate Investment Trust (REIT) benchmark index space, with the launch of 12 co-branded indexes. The new indexes, available now, include:
|NASDAQ ETRE Composite REIT Index||NQETRE|
|NASDAQ ETRE Composite REIT Total Return Index||NQETRET|
|NASDAQ ETRE Healthcare REIT Index||NQETHC|
|NASDAQ ETRE Healthcare REIT Total Return Index||NQETHCT|
|NASDAQ ETRE Hospitality REIT Index||NQETH|
|NASDAQ ETRE Hospitality REIT Total Return Index||NQETHT|
|NASDAQ ETRE Office REIT Index||NQETO|
|NASDAQ ETRE Office REIT Total Return Index||NQETOT|
|NASDAQ ETRE Residential REIT Index||NQETRR|
|NASDAQ ETRE Residential REIT Total Return Index||NQETRRT|
|NASDAQ ETRE Retail REIT Index||NQETR|
|NASDAQ ETRE Retail REIT Total Return Index||NQETRT
"NASDAQ OMX continually searches out ways to bring better benchmarks to the investment community," said Dave Gedeon, Managing Director of Index Development at NASDAQ OMX. "ETRE Financial is an innovator in the single asset exchange traded property market and partnering with ETRE will allow NASDAQ and ETRE to create better benchmarks for real estate investors in measuring returns and gaining exposures. We are excited by the opportunity to bring these new benchmarks to market."
The NASDAQ ETRE REIT Index family is designed to provide smart-beta exposure to the U.S. real estate market through the usage of REIT security types. The indexes use ETRE Financial's unique proprietary Enterprise Value methodology to weight components based on the total value of the underlying properties of the real estate investment trust (REIT), rather than simply the traditional market cap equity value of the component.
Jesse Stein, Co-Founder and Chief Operating Officer at ETRE added, "A weighting system that incorporates Enterprise Value as the basis for an index more closely approaches the actual performance of the real estate marketplace, and provides a benchmark for single asset exchange traded property valuation."
The indexes launched on May 1, 2014, with price and total return versions, and are disseminated over NASDAQ OMX's Global Index Data (GIDS) Service.
About NASDAQ OMX Global Indexes *
NASDAQ OMX Global Indexes has been creating innovative, market-leading, transparent indexes since 1971. Today, our index offering spans geographies and asset classes and includes diverse families such as the Dividend Achievers, Global, Nordic, Green Economy, Sharia and Commodity Indexes. We continuously offer new opportunities for financial product sponsors across a wide-spectrum of investable products and for asset managers to measure risk and performance. NASDAQ OMX Global Indexes also provides custom index services and design solutions to selected financial organizations. For more information about NASDAQ OMX Global Indexes, visit indexes.nasdaqomx.com.
Daily index values, weightings and historical data for NASDAQ OMX indexes are available via NASDAQ OMX Global Index Watch and NASDAQ OMX Global Index Data Service.
* NASDAQ OMX was named "2014's Most Innovative Index Provider" by the readers of ETF Trends