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Recently the NYSE has modified the way the Composite is calculated
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From the NYSE website:
| Index Description |
| The NYSE Composite Index (NYA) is designed to measure the performance of all common stocks listed on the NYSE, including ADRs, REITs and tracking stocks. In January 2003 the NYSE reintroduced the NYSE Composite Index under a new methodology that is fully transparent and rule-based. Under the new methodology, all closed-end funds, ETFs, limited partnerships and derivatives are excluded from the index. As of year-end 2004, the NYSE Composite consists of over 2,000 U.S. and non-U.S. stocks. It is a measure of the changes in aggregate market value of all NYSE-listed common stocks, adjusted to eliminate the effects of capitalization changes, new listings and delistings. The index is weighted using free-float market capitalization and calculated on both price and total return basis. |
The NYSE has redefined the NYSE Composite's index methodology. The methodology is now rule based and fully transparent. The following table summarizes the differences between the new and the old methodology:
|
Old Methodology |
New Methodology |
| Security class eligible for inclusion |
| Common stocks |
Yes |
Yes |
| ADRs |
Yes |
Yes |
| Tracking Stocks |
Yes |
Yes |
| REITs |
Yes |
Yes |
| Closed-end funds |
Yes |
No |
| ETFs |
Yes |
No |
| Preferred stocks |
No |
No |
| Derivatives |
Yes |
No |
| Shares of beneficial interest |
Yes |
No |
| Trust units |
Yes |
No |
| Limited partnerships |
Yes |
No |
| Weighting |
Full market capitalization |
Float-adjusted market cap |
| Base Date |
December 31, 1965 |
December 31, 2002 |
| Base Value |
50 |
5,000 |
| Maintained/Calculated by |
Securities Industry Automation Corp. (SIAC) |
Dow Jones Indexes |
| Reconstitution/Rebalancing |
Ongoing |
Ongoing |
| Share Updates (<10%) |
Daily |
Quarterly |
| Return Calculation |
Price return index |
Price and total return indexes |
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