Brooklyn Investment Group Launches Innovative American Depositary Receipts (ADR) Index in Partnership with Nasdaq

Rhea-AI Summary

Brooklyn Investment Group and Nasdaq have launched the Nasdaq-Brooklyn ADR™ Index, designed for direct indexing and tax-loss harvesting strategies in separately managed accounts. The index uses a liquidity-adjusted weighting methodology to scale down weights for ADRs with low liquidity. This allows investors to diversify into international equities within the US equity market.

NEW YORK, Nov. 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 (SMAs) to address their greater liquidity requirements.

The index leverages a liquidity-adjusted weighting methodology to scale index weights down for American Depositary Receipts (ADRs) with liquidity below the underlying stock's market value. ADRs give investors the opportunity to diversify into international equities within the domestic U.S. equity market.

Adjusting for liquidity is important in the ADR market because the liquidity of the U.S.-listed instrument does not have to be closely tied to the market capitalization of the foreign-listed primary shares. The adjustment can help reduce trading and index turnover costs. As a result, the Nasdaq-Brooklyn ADR™ Index provides investors with broad international exposure in a potentially more cost-effective way. 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 envelope on what's possible in the investment management industry," said Antti Petajisto, Head of Equities at Brooklyn Investment Group. "Combining Nasdaq's years of expertise in capital markets with Brooklyn's focus on tech-enabled innovation in portfolio management will widen the range of tools available to investors. We are particularly excited to introduce the novel concept of a liquidity adjustment factor and its potential to unlock significant savings on trading costs, even for relatively passive investment strategies."

"At the forefront of innovation, Nasdaq is focused on implementing unique technologies to enhance indexing," said Cameron Lilja, Vice President and Global Head of Index Product and Development at Nasdaq. "We're excited to partner with Brooklyn Investment Group to develop an index methodology that creates more opportunities for investors to gain differentiated exposure to the market."

The Nasdaq-Brooklyn ADR™ Index is now included in Brooklyn Investment Group's SMA platform and available for financial advisory firms and asset managers through Nasdaq.

About Brooklyn Investment Group

Brooklyn Investment Group is an SEC-registered investment adviser that combines artificial intelligence with institutional-grade portfolio optimization and automated tax-loss harvesting to power personalized 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 reach out to us at info@bkln.com. 

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 an overall investment strategy. Neither Brooklyn Investment Group, The Nasdaq, Inc. nor any of its affiliates make any recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund. Statements regarding Nasdaq's proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

Contact:
Stella Binkevich
stella@bkln.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/brooklyn-investment-group-launches-innovative-american-depositary-receipts-adr-index-in-partnership-with-nasdaq-301973458.html

SOURCE Brooklyn Investment Group

FAQ

What is the Nasdaq-Brooklyn ADR™ Index?

The Nasdaq-Brooklyn ADR™ Index is an index designed for direct indexing and tax-loss harvesting strategies in separately managed accounts. It allows investors to diversify into international equities within the US equity market.

Who launched the Nasdaq-Brooklyn ADR™ Index?

The Nasdaq-Brooklyn ADR™ Index was launched by Brooklyn Investment Group, LLC in partnership with Nasdaq.

What is the purpose of the liquidity-adjusted weighting methodology?

The liquidity-adjusted weighting methodology scales down weights for ADRs with low liquidity. This helps reduce trading and index turnover costs.

What are the benefits of the Nasdaq-Brooklyn ADR™ Index?

The Nasdaq-Brooklyn ADR™ Index provides investors with broad international exposure in a potentially more cost-effective way.