SIG Education Indextm (ESUSM): This index captures the performance of companies engaged in for- profit educational enterprises. The index is comprised of 10 companies and is equal dollar weighted.
SIG Footwear & Athletic Indextm (FSQSM) –This index is engaged in the production and retailing of athletic footwear and related apparel. The index is comprised of 18 companies and is equal dollar weighted.
SIG Restaurant Indextm (DSQSM) –This index covers causal dining and fast food. The index is comprised of 18 food retailers and is equal dollar weighted.
SIG Specialty Retail Indextm (RSQSM) –This index focuses on “soft lines” clothing retailers such as the Gap, The Limited, etc. but also includes more diverse retailers (e.g. Sharper Image). The index is comprised of 25 companies and is equal dollar weighted.
Cash options on ESU, FSQ, DSQ and RSQ will trade on PHLX XL, the Exchange’s electronic trading platform, along with 19 other PHLX proprietary indexes.
“Phlx begins 2005 by bringing four new innovative sector products to traders and investors alike,” said PHLX Vice President of New Products, Daniel Carrigan. “The four SIG Indices represent new ways to buy and sell volatility on sectors that have not been previously covered. Portfolio managers can fine-tune broad-based index positions by hedging out sectors. Conversely, they can overweight sectors.
SIG Indices represent a crucial tool in the evolution of complex delta neutral trading strategies, added Carrigan
“With the addition of benchmark indices on PHLX for Education, Footwear & Athletic, Restaurant, and Specialty Retail sectors, investors can capitalize on the many trends that influence these important consumer demand areas,” said SIG Indices President, Jamie Farmer. “Consumers have driven US expansion for the last three years. Family decisions on which staple items to buy in terms of footwear and clothing are constantly in flux due to changing trends amongst all age group demographics. Because of the frequency of which these decisions materialize, these sectors are characterized by significant volatility.”
Added Farmer: “Education to increase career potential for current members of the work force is a powerful trend that continues to grow. The education index reflects rapid socioeconomic changes in the US. Hand-in-hand with these changes is the growth in customer visits to restaurants due to the increased mobile lifestyle of both families and professionals. In summary, these indices bring trading opportunities for highly watched consumer trends in the US.”
The Philadelphia Stock Exchange was founded in 1790. The PHLX trades nearly 2,000 stocks, over 1,500 equity options, 19 sectors index options and currency options and futures. For more information about the PHLX and its products, visit www.phlx.com.
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