a registered broker-dealer, is distributor for DIAMONDS, MidCap SPDRs
, Nasdaq-100 Index Tracking Stock, Select Sector SPDRs and SPDRs.
MidCap SPDRs are designed to track the performance of the S&P MidCap 400 index, an index of moderate capitalization firms, and are expected to have higher arbitrage costs.
We investigate and compare pricing in the SPDRs and MidCap SPDRs markets.
We also find that SPDRs and MidCap SPDRs returns are not excessively volatile, unlike the returns to closed-end funds (Pontiff, 1997).
10] However, arbitrage opportunities may arise more often in the MidCap SPDRs market because the underlying index includes less visible, lower volume stocks.
We compare the extent of mispricing in SPDRs and MidCap SPDRs.
The licensing rights, which State Street has acquired from PDR and the AMEX, grant State Street the use of the SPDRs, MidCap SPDRs and DIAMONDS trademarks together with certain other trademarks of Standard and Poors(R) and Dow Jones(R), including the S&P 500(R), the S&P MidCap 400 and the Dow Jones Industrial Average(TM).
The three ETFs-- the SPDR(R) Trust, MidCap SPDR Trust and DIAMONDS(TM) Trust-- are sponsored by PDR Services LLC (PDR), a wholly-owned subsidiary of the American Stock Exchange LLC.
The SPDR Trust, MidCap SPDR Trust and DIAMONDS Trust will continue to be listed on the AMEX.
Investors today can invest in ETFs that are indexed to the S&P 500 and other S&P indexes through a variety of products that currently trade on the American Stock Exchange and other exchanges, including SPDRs, MidCap SPDRs
, Select Sector SPDRs and BGI's family of iShares.
In addition to its role as a national equities market, Amex is the leader in Index Share listings (DIAMONDS, FORTUNE 500 Index Trading Stock, FORTUNE e-50 Index Trading Stock, iShares, MidCap SPDRs
, Nasdaq-100 Index Trading Stock, Select Sector SPDRs, and SPDRs and streetTracks), and is the second-largest options exchange in the U.
We're seeing growing interest in exchange-traded funds such as WEBS and WEBS' sister products on the American Stock Exchange, SPDRs and MidCap SPDRs
," said Betsy Connolly, president of Funds Distributor.