Study Finds Russell 1000® Index is Better Benchmark for Large Capitalization U.S. Stocks

The Russell 1000 Index is a superior benchmark to the S&P 500 and the Dow Jones Industrial Average (DJIA) as a proxy for today's large capitalization U.S. stocks, according to a recently updated report. Following the reconstitution to the Russell 1000 Index, C. Michael Carty, principal of New York-based New Millenium Advisors, updated a paper entitled "Choosing the Proper Benchmark For Large Capitalization U.S. Stocks." In this study, Mr. Carty analyses the Russell 1000 index of the U.S. stock market as a better determinant than the S&P 500 and the Dow Jones Industrial Average (DJIA) to best represent large cap U.S. stocks as an asset class. According to Mr. Carty, "a growing number of investors are coming to regard the S&P 500, like the DJIA before it, as too narrowly focused on too few large cap stocks, and think it must be discarded in favor of a broader, more representative index." After thorough analysis of these indexes, Mr. Carty concludes that "the Russell 1000 is a better alternative to the S&P 500 as a large cap benchmark and is the best measurable barometer of the large capitalization U.S. stock market available today." The Russell 1000 Index futures and options contracts, traded on the New York Board of Trade's (NYBOT) New York Futures Exchange (NYFE) subsidiary, offers institutional investors a more precise index hedging tool to match fund/portfolio investment objectives. NYBOT's Russell 1000 Index futures contract eliminates tracking errors associated with the S&P 500 and Midcap 400. In addition, the broader focus of the contract eliminates the need to use separate benchmarking contracts. To request a copy of Mr. Carty's white paper, please contact the New York Board of Trade, (212) 742-6100, or view the NYBOT website at www.nybot.com/reports/carty.cfm to read a two page synopsis or download the entire paper. Further information on Russell 1000 Index Futures and Options is available on the internet, www.russell1000futures.com. The New York Board of Trade (NYBOT) is the parent company of the Coffee, Sugar & Cocoa Exchange (CSCE) and the New York Cotton Exchange (NYCE). Through its two exchanges and additional subsidiaries, including the New York Futures Exchange (NYFE), FINEX and Citrus Associates, NYBOT offers a variety of agricultural, financial and index products. The Cantor Exchange (CX), a venture of NYBOT and Cantor Fitzgerald, provides the first electronic, screen-based market for U.S. Treasury futures.