Index Investing: From Theory to Practice · Dr MAI Huu Minh, TRAN Phan Bao Ngoc & HUYNH Nguyen Quoc BuuChapter 17 of 37 · Module 4: Build and test
CHAPTER 17
Case Study: IFRC-NXW Global Indexes
From a universe of 100,000 indexes in ten levels to eight flagship indexes: design, calculation and publication
Opening question
“A provider says it calculates more than 100,000 indexes. Who builds that many, how is it even possible — and what does it take to design, calculate and publish just one of them properly, every single day?”
In this chapter
- Who builds the indexes: IFRC, NXW and their Vietnamese index series
- The NXW universe and its ten levels of index innovation
- How one rule template, many universes and a few variants multiply into tens of thousands of indexes — and the governance this demands
- Where the eight flagship NXW indexes sit in the ten levels, and their design briefs
- The methodology of the flagship family and the trade-offs behind caps, equal weight and fixed allocations
- The daily calculation routine, from prices to published level
- What the simulated histories show, how the indexes are published, and how a committee and a change log govern them
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This chapter is in the full book
Chapter 1 is free to read online. The full text of chapter 17 — with its tables, figures, worked examples and practice lab — is available in the complete edition of Index Investing: From Theory to Practice (Volume 1, NXW Investment Library).
Read Chapter 1 freeGet the full book — [email protected]Sections of this chapter
17.1 Who builds the indexes: IFRC and NXW
17.2 A universe in ten levels
17.3 How a family reaches 100,000 indexes
17.4 The eight flagship indexes and their place in the ten levels
17.5 The methodology and its trade-offs
17.6 The daily calculation process
17.7 What the simulated histories show
17.8 Publication in the NXW online monitor
17.9 Governance: the committee and the change log