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The NYSE World Leaders Index serves as a benchmark to track, as a single asset class, the performance of 200 true world leaders across 10 industry sectors and all regions of the world. The index is constructed by combining the NYSE U.S. 100 and NYSE International 100 Indexes and these reflect the NYSE's high standards and substantial listing requirements. It is well diversified across all 10 industry sectors (as defined by Dow Jones) and currently represents 19 countries, including the United States. The components of the NYSE World Leaders Index have a total market capitalization of $9.7 trillion and cover 36.7% of the market capitalization of the world markets.
As many analysts have noted, it has become difficult to associate companies with a single economic domicile. Increasingly, share-price performance is affected by global and sectoral economics or overall equity sentiment rather than conditions prevailing in the local market where the company is geographically headquartered. This has led to the growing awareness among investors of the benefits and opportunities available in the global markets. In response to this trend, we developed the NYSE World Leaders Index. The concept of global investing for country diversification continues to grow as non-U.S. equities now account for over 45% of the world's total market capitalization.
All of the components of the NYSE World Leaders Index are priced on the NYSE during U.S. trading hours. And, while there are several global indexes available, they tend to include components that are not priced during U.S. market hours. With its limited number of components and intraday pricing, the NYSE World Leaders Index is much more suitable for tracking the non-U.S. market and for use as the basis for investable products.
Similar indexes, such as the Dow Jones World Index, have under performed the NYSE World Leaders Index over the past five years.
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