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Technological innovation has been one of the key drivers in improving productivity across all sectors of the economy. There has been convergence in the technology, media and telecommunications (TMT) sectors with the boundary lines between different industries becoming increasingly blurred. The NYSE TMT Index offers investors the opportunity to track 100 NYSE listed-companies that are high-quality leaders in these market sectors.
A number of analysts have noted that the new media industry continues to present significant opportunities, despite developing at a slower rate than anticipated. Four major trends have been noted as potential growth areas: digitization of content, migration of content to subscription-based and on-demand models, evolution of new content delivery platforms, and differentiation in content creation.
With the TMT sector representing 19% (by market cap) of the investable universe globally, the index provides a means to track opportunities in a significant segment of the market.
The index tracks the top 100 technology, media and telecommunications stocks listed on the NYSE. The companies represented have a market capitalization of $2.3 trillion, which covers 45.7% of the entire market capitalization of TMT companies globally ($5.1 trillion), and is approximately the same size as the nearly 4,000 companies in the Nasdaq Composite Index.
The NYSE TMT is the first index that provides a tool to track the global TMT market with all components priced on the NYSE during U.S. trading hours.
Well-known indexes with a predominant technology component, such as the Nasdaq Composite and Nasdaq-100, have under-performed the NYSE TMT over the past three years.
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