Nasdaq unveils indices to measure ETF performance

The Nasdaq OMX Alpha indices allow market participants to track the return of a single stock or ETF against a leading ETF or another single stock of the same type, allowing investors and traders to capitalise on return opportunities. For example, if the price of a stock declines less than a certain ETF, the Alpha indices tracking the specific relation between the two will increase. This allows investors to track correlation and provides the opportunity for them to adjust their portfolios in line with the particular market relationship being followed. Vanderbilt University professor...