NEW YORK, November 1, 2023 /PRNewswire/ — Brooklyn Investment Group, LLC in partnership with Nasdaq (Nasdaq: NDAQ), today announced the launch of the Nasdaq-Brooklyn ADR™ Index, designed specifically for direct indexing and tax loss harvesting strategies implemented in separately managed accounts ( SMA) to meet their greater liquidity requirements.
The index uses a liquidity-adjusted weighting methodology to reduce the index weights for American Depositary Receipts (ADRs) with liquidity below the market value of the underlying shares. ADRs allow investors to diversify into international stocks within the domestic US stock market.
The liquidity adjustment is important in the ADR market because the liquidity of a US-listed instrument should not be closely related to the market capitalization of the primary shares listed abroad. The correction could help reduce trading costs and index turnover. As a result, the Nasdaq-Brooklyn ADR™ provides investors with broad international exposure in a potentially more cost-effective manner. To learn more about the Nasdaq-Brooklyn ADR™ Index, please see our research note, https://www.nasdaq.com/nasdaq-brooklyn-adr-index.
“Together, Brooklyn Investment Group and Nasdaq are pushing the boundaries of what’s possible in the investment management industry,” said Antti Petagisto, head of equities at Brooklyn Investment Group. “Combining Nasdaq’s long-standing experience in the capital markets with of Brooklyn focusing on technological innovation in portfolio management will expand the set of tools available to investors. We are particularly excited to introduce the new concept of a liquidity adjustment factor and its potential to unlock significant trading cost savings, even for relatively passive investment strategies.”
“At the forefront of innovation, Nasdaq focuses on applying unique technologies to improve indexing,” said Cameron Lily, vice president and global head of index products and development at Nasdaq. “We are excited to partner with Brooklyn Investment Group to develop an indexing methodology that creates more opportunities for investors to gain differentiated market exposure.”
The Nasdaq-Brooklyn ADR™ Index is now included in Brooklyn Investment Group’s SMA platform and is available to financial advisory firms and asset managers through Nasdaq.
About Brooklyn Investment Group
Brooklyn Investment Group is an SEC-registered investment advisor that combines artificial intelligence with institutional-grade portfolio optimization and automated tax loss harvesting to power customized portfolios for its clients, which include wealth and asset management firms. To learn more about the company, its technology and career opportunities, visit BKLN.com, LinkedIn or contact us at [email protected].
The information contained above is provided for informational and educational purposes only and nothing contained herein should be construed as investment advice, either on behalf of a particular financial product or overall investment strategy. Neither Brooklyn Investment Group, The Nasdaq, Inc. nor any of their affiliates make recommendations to buy or sell any financial product or represent the financial condition of any company or fund. Statements about Nasdaq’s proprietary indices are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past results are not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITY PROFESSIONAL IS STRONGLY RECOMMENDED.
SOURCE Brooklyn Investment Group