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The economy of the United States is the largest in the world and as such is an important indicator of both domestic and world economic trends. The strength and potential of the U.S. market, as well as its relative stability, are just two of the many reasons to invest in the high-quality companies of the NYSE. Savvy investors are discovering the opportunities available in the U.S. market, just as past generations of investors have for over 200 years.
The New York Stock Exchange has developed the NYSE U.S. 100 Index as a way to track the "best of the best". The Exchange has substantial listing standards with respect to company size, income and cash flow, providing a base level of quality for the index's potential components. This index is designed to assist investors looking to diversify their U.S. holdings across 10 industry sectors (as defined by Dow Jones). Many studies have shown that, over time, the most stable investing strategy is a diversified one; the goal of this index is to maximize the utility of that finding.
The NYSE U.S. 100 Index tracks the top 100 U.S. stocks trading on the NYSE. The companies represented have a market capitalization of $5.95 trillion, which covers 47% of the entire market capitalization of U.S. companies and over 62% of U.S. companies listed on the NYSE. Additionally, these companies are major market participants, most of which are well-known household names. This fact, along with the NYSE's significant U.S. market penetration, ensures that this index will closely track the entire U.S. market. The U.S. companies listed on the NYSE represent over 81% of the market capitalization of the entire U.S. market and 87% of revenues for all U.S. companies.
Well-known U.S. equity indexes such as the S&P 500 and S&P 100 have under-performed the NYSE U.S. 100 Index over the past three and five years.
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