The Most Obscure Stock Index Ever?

by Todd Shriber

There are plenty of wild ideas for stock indexes out there, but this one may take the cake: The Dow Jones Summer/Winter Games Index. Yes, that’s right. An index has been formed to track companies that are corporate sponsors of the upcoming 2012 Summer Olympics in London and the 2014 Winter Olympics in Russia.

Believe it or not, this index has been around for a while. Dow Jones says it was initially calculated on Dec. 6, 2007. And until Tuesday, the Dow Jones Summer/Winter Games Index was home to 37 stocks, seven more than are found in the Dow Jones Industrial Average.

Prepare to welcome Olympic index member 38: General Mills (GIS), the second-largest U.S. food company. Big G’s Nature Valley brand will be the official cereal snack bar supplier to the London games, Dow Jones said in a statement. Dow Jones said the index is reviewed quarterly and General Mills was added as part of the September. No members were deleted.

With a median market value of $14.6 billion, the Olympic index isn’t home to a bunch of no-name companies. In fact, six Dow components are found among the index’s top holdings. Those are Coca-Cola (KO), Procter & Gamble (PG), General Electric (GE), McDonald’s (MCD), Cisco (CSCO) and General Mills rival Kraft (KFT).

Since indexes aren’t securities that can be purchased, perhaps the biggest question surrounding the Dow Jones Summer/Winter Games Index isn’t why it even exists, but why hasn’t an ETF been created to track it? After all, ETF issuers love the obscure.

*Disclosure: Writer is long General Mills.

Related posts:

  1. Jurassic Stock: The ETFs That Time ForgotStock market analysis website Seeking Alpha keeps a Deathwatch list of exchange-traded fund products whose average trading value languished under...
  2. Guilty Plea in Alleged Index Arbitrage FraudWG Trading Co. Principal Paul Greenwood pleaded guilty in New York to criminal charges of conspiracy and securities...
  3. Brazil’s Election and the Stock it ImpactsIf you weren't trick-or-treating or attending a costume party on Halloween, you may have been compelled to follow...
  4. A Revealing Stock Market Indicator?We've mentioned some pretty interesting stock market indicators of here at Trader Daily. But the bears may have...
  5. This Week In Wall Street History August 30thAugust 30th - Known for his folksy charm, frugality, prized annual shareholders’ letter, and immense wealth, the “Oracle...

Short URL:

You must be logged in to post a comment Login

Receive TraderDaily by Email

- Yes! Sign me up for TraderDaily by Email
First Name:
Last Name:

Twitter Facebook Linked In RSS Feed

© 2016 TraderDaily. All Rights Reserved.

Videos, Slideshows and Podcasts by Cincopa Wordpress Plugin