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Monday, January 5, 2015

Nasdaq boosts smart beta index business in $225 million deal, (NASDAQ: NDAQ)

Nasdaq OMX Group Inc said on Monday it will purchase smart beta index provider Dorsey, Wright & Associates LLC for $225 million to boost its index business.Nasdaq will manage DWA's exchange-traded funds (ETF) and its own so-called smart beta ETFs, focused mainly on dividend and income strategies.Smart beta strategies, the fastest growing segment of the ETF market, weigh their component stocks by criteria other than market capitalization and are typically created via algorithms designed for their ability to cherry pick winning stocks.Fifty nine percent, or $115.8 million, of new investor money that has gone into exchange traded funds since January 2013 has been placed in smart beta ETFs, making them the fastest growing segment of the market, according to Morningstar.

The NASDAQ OMX Group, Inc. (NASDAQ OMX) is a holding company. Shares of NDAQ fell by 0.48% or $-0.23/share to $47.63. In the past year, the shares have traded as low as $33.49 and as high as $49.71. On average, 935511 shares of NDAQ exchange hands on a given day and today's volume is recorded at 472204.