The Value Line broke new ground as the world's first stock index futures contract. The Value Line is made up of 1,650 stocks from different industries including blue-chip, mid-cap and small-cap issues. These stocks are equally weighted, which allows the Value Line to remain one of the broadest-based stock indexes and a good indicator of how the market will perform. The price movement of a smaller company has as much impact on the index as the movement of a larger company. This is unlike other stock indexes, where the movement of larger or higher-priced stocks has a disproportionate influence. The Value Line is affordably priced for institutional and individual investors with a multiplier of $100.
The Value Line is an excellent candidate for spread trading against more narrow indexes such as the Dow Jones Industrial Average and the S&P 500, and against broader capitalization-weighted indexes such as the New York Stock Exchange composite. Following is the Value Line/S&P spread chart for the previous year, which illustrates the gains that the Value Line has made during that time period.
Value Line® is a registered mark of Value Line® Inc., a New York corporation that provides financial services and publications. Since 1982, the Kansas City Board of Trade has been licensed to use the Value Line® mark in connection with its efforts to establish futures markets tied to the Value Line® index. The Kansas City Board of Trade and Value Line, Inc. are not affiliated corporate entities.
