S&P Dow Jones Indices to calculate two new indexes for W.E. Donoghue

By Wendy Van Sickle

Columbus, Ohio, Oct. 21 – S&P Dow Jones Indices has been selected as the custom calculation agent for two new custom hybrid indexes, according to a press release from the company.

The rules-based indexes are W.E. Donoghue’s Power Dividend Developed International index and W.E. Donoghue’s Power Dividend Mid-Cap index.

Custom hybrid indexes are client-owned, white label indexes that use an S&P Dow Jones index to screen for constituents and/or as an actual constituent of their index, according to the release.

The new international and mid-cap indexes measure high-yielding dividend-paying stocks in developed international markets and mid-cap markets, respectively, when in a bullish position. The indexes use mechanical trend-following techniques to lower risk from broad declines in their markets by shifting to short-term Treasuries when in a bearish position, according to W.E. Donoghue.

“We have seen a growing trend among Registered Investment Advisors (RIA) to develop and maintain customized, transparent benchmarks that cater to their investment strategies," Michael Mell, director of custom indexes at S&P Dow Jones Indices, said in the release.

New York-based S&P Dow Jones Indices is a part of McGraw Hill Financial and provides index-based concepts, data and research. W.E. Donoghue is an independent wealth adviser based in Norwood, Mass.

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