"We are extremely pleased to be working with PowerShares," said Robert Tull, vice president of the Amex ETF Marketplace. "The creation of the Intellidex Indexes contributes to our overall strategy of extending our ETF innovation into other revenue-generating peripheral areas of the ETF segment. Not only is the Amex the premier listing venue for ETFs in the marketplace, but it is also an architect of expanding index strategies."
The Intellidex Indexes are modified, equal dollar-weighted indexes composed of stocks selected quarterly based on a proprietary quantitative method. The Dynamic Market Intellidex Index (DYI) is composed of stocks selected quarterly from the universe of the two thousand largest stocks by market capitalization of U.S. headquartered companies listed for trading on the American Stock Exchange, New York Stock Exchange or quoted on the Nasdaq National Market. The Dynamic OTC IntellidexSM Index (DYO) is composed of stocks selected quarterly from the universe of the one thousand largest U.S. headquartered companies quoted on the Nasdaq National Market. The indexes are comprised of 100 stocks each and are calculated and maintained by the Amex.
"The Amex's expertise in index calculation can be used to create proprietary indexes for ETFs and other investment products," said Scott Ebner, associate director of new product development at the Amex.
Using rules-based quantitative analysis, the Intellidex Indexes consistently evaluate their index composition on fundamental growth, timeliness, valuation, and risk factors. This enables the Intellidex Indexes to adjust the portfolio to assure a consistent and accurate representation of a specific market segment.
On a quarterly basis, eligible companies are ranked within sector and size-based categories based on an overall score determined using a variety of criteria, including metrics based on financial statements, consensus data, and market activity. The 100 stocks included in the Intellidex Indexes are selected from the top of each sector and size category in a manner designed to produce an index with sector and size dispersion similar to the overall market segment.
