Fortune-Index Based Funds Planned
July 24, 2000
The Fortune Group has licensed State Street Global Advisors of Boston to manage two exchange-traded funds based on the Fortune 500 and Fortune e-50 stock indexes. SSGA filed a registration statement with the SEC last week for both of the exchange-traded funds, the Fortune 500 Index Tracking Stock and the Fortune e-50 Index Tracking Stock, according to Fortune.
The Fortune 500 Index is based on Fortune's list of America's 500 largest companies, ranked by revenues. The Fortune e-50 Index tracks the performance of companies for which a significant share of revenues come from online products or services. Both funds will be listed on the American Stock Exchange, which currently lists 58 exchange-traded funds.
The funds are the first to be based on the Fortune 500 and e-50 indices, introduced in December 1999, according to Vivek Shah, manager of new business ventures at Fortune. In February, Fortune signed an agreement with the Chicago Mercantile Exchange for the exchange to develop and trade futures and options contracts on the Fortune 500 Index and the Fortune e-50 Index.