"As an all-electronic exchange, revolutionizing an industry through technology, it's a natural fit for Archipelago to launch an ETF based on this successful technology index, and to leverage an asset we acquired in our acquisition of the Pacific Exchange," said Jerry Putnam, CEO of the Archipelago Exchange. "ArcaEx has emerged as a leader in the trading of ETFs and will continue to look for opportunities to provide value added trading and listings services in the ETF arena."
The ArcaEx Tech 100 Index has been in existence since 1982, and is commonly referenced as a benchmark for the U.S. tech sector. This price- weighted Index is comprised of 100 listed and over-the-counter securities including computer hardware, software, semiconductors, telecommunications, data storage and processing, electronics and biotechnology. Modeled as a multi-industry technology index, the objective of the Index is to provide a performance benchmark of leading technology companies operating across a broad spectrum of industries.
The Index's unique price-weighting structure tends to lead to a more even distribution among its 100 holdings, as compared to market-cap weighted indexes, as well as its favorable risk/return characteristics when compared to other often-quoted technology benchmarks. The ArcaEx Tech 100 Index seeks to act as an accurate barometer for the performance of technology leaders.
The Index is relied on by data analysts and rating services such as Morningstar, as well as by asset managers and private investors to gauge the performance of the U.S. equity market's technology sector. While Archipelago has chosen to rename the Index, it will retain its existing constituents and guidelines.
Currently, North Track Funds, Inc. (North Track Funds(R)), distributed by B.C. Ziegler and Company, offers an open-end mutual fund based on the ArcaEx Tech 100 Index. The ArcaEx Tech 100 Index Fund (PPTIX) holds an overall five- star ranking from Morningstar,** and as of September 30, 2005 held nearly $450 million in assets.*** The ArcaEx Tech 100 ETF will be distributed through North Track Funds' existing wholesaling sales force to financial intermediaries nationwide. "Not all indexes make for good investment portfolios," said David Stoeffel, CEO of North Track Funds and Ziegler Capital Management, LLC. "However, the unique construction methodology behind the ArcaEx Tech 100 Index results in an extremely competitive technology investment, and is the primary reason why the ArcaEx Tech 100 Index Fund has been our flagship product since its launch in 1996."
Stoeffel added, "Over time, we've developed a proficiency with this product -- both in how we market and promote it to financial intermediaries. The fit with Archipelago was a natural extension of our own branding, Index Funds With Advice. We're pleased Archipelago has chosen to partner with us on this exciting ETF launch."
In recent months, Archipelago has taken aggressive steps towards growing its ETF listings business. In June, Archipelago announced a new suite of services around indexes, serving as the calculation agent and providing tickers and broad distribution to the public over the Consolidated Tape Association. ArcaEx also trades more ETF volume than any other exchange. Through third quarter 2005, ArcaEx traded nearly 34% of the market share of executed shares handled.
The ArcaEx Tech 100 ETF is issued by the Exchange Traded Trust, a 1940 Act Registered Investment Company.
