Stock indices measure the statistical performance of the broad market or a specific subset of publicly traded equities. Using a weighted average of the names included within, the hypothetical portfolios (you cannot invest directly in an index) serve as a benchmark for investors (and money managers) and enable those following the markets to gauge its movements.
The NASDAQ Composite (includes: the +/- 3,300 names on NASDAQ exchange, a large portion of which are are technology related), Down Jones Industrial Average (includes: 30 blue-chip companies, believed to be an indicator of overall market performance) and S&P 500 Index (includes: 500 large cap companies, strong indicator of the dividend value market) are the three most widely followed indices, but there are +/- 5,000 others within the U.S. equity market constructed around market cap size, a specific sector and/or another underlying commonality. Remarkably, despite the overwhelming popularity of professional sports (PWC estimates the North American market is worth in the high 8-figures), there is no commonly cited measuring stick that gauges the growth – or lack thereof – of the greater domestic sports business.
JohnWallStreet by Sportico has decided to change that. Moving forward we’ll be tracking the day-to-day performance of the industry using our new sports stock index. The price-weighted index (think: the portfolio contains one share of each company) will be comprised of 50 small (16), mid (12) and large cap names (22). We chose not to include micro-cap companies in the portfolio as the accounting method selected is already weighted towards large cap names.
To ensure the sports stock index provides a truly holistic representation of the ecosystem, we selected companies from a wide variety of sports-related businesses. The portfolio includes professional teams and venues, telecom enterprises, broadcast networks, footwear, apparel and outerwear retailers, sports betting and gaming operators, sporting goods stores, fitness companies, ticketing marketplaces, content generators, technology providers and video game developers. You can find the full list of names included below.
The JohnWallStreet by Sportico sports stock index exists solely for tracking purposes. We are not advising anyone to invest in this particular basket of public companies.
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