Nyquist Small/Mid Cap Networking Index

Definition

The Nyquist Small/Mid Cap Networking Index benchmarks the performance of the 30 largest carrier networking oriented companies under $5B in market capitalization. It draws from a pool of companies including networking components (silicon and optical), carrier-oriented equipment, and wholesale fiber carriers. The construction and re-balancing of the index are based on the rules of the Russell 2000 and other Russel indexes.

Companies in this sector experience large equity price fluctuations making it difficult to distinguish individual company performance from sector performance. The Nyquist Small/Mid Cap Networking Index provides the means for us as well as individuals/institutions/companies operating and investing in the sector to evaluate their short and long term performance against a group of peers, suppliers, and customers. It is not a recommended portfolio nor should it be considered investment advice.

All of the below data is computed using 20-min delayed prices.

Intraday Values and Total Index Returns


* Annualized Return

Index Selection Pool


The Index Selection Pool is updated throughout the year. Suggestions about index pool modifications can be made via the Nyquist Forums or by contacting us directly.

Carriers ABVT*, CCOI, FTGX, GLBC, LVLT, RCNI, TWTC, XOHO
Equipment ADCT, ADTN, ALU, APKT, ARRS, BBND, CIEN, COMS, CSCO, ERIC, FDRY, INFN, JNPR, MRVC, MOT, NOK, NT, OCNW, SCMR, SOAP, SONS, STAR, TLAB, UTSI
Components (Semis) ALTR, AMCC, ATHR, BRCM, CAVM, CTLM, CNXT, EZCH, HIFN, IKAN, MRVL, MSPD, MTLK, NETL, PMCS, PSEM, TXCC, VTSS*, XLNX, ZL
Components (Optics) AVNX, BKHM, EMKR ,FNSR, JDSU, OPLK, OPXT, OPTM

* Companies Lack Up-to-date Financials.

Index Composition and Relative Performance



The below chart lists all 30 components of the index and their relative performance since the last re-balancing. Note, the red/green does not indicate the change in a specific companies equity price. It indicates the change in the percentage composition of the index, and is a useful tool for judging relative performance of a basket of equities.

Example: Company X composed 10% of the index at the beginning of a period, and during the period the index doubles. If the stock price of company X did not double as well, then company X falls from 10% to 5% of the index, and shows a 5% reduction (red).

Likewise, if the stock price of company X remains unchanged while the value of the index drops by 50%, it’s contribution to the index doubles.

In each case, the change in a companies contribution to the index indicates it’s out-performance or under-performance relative to the index and is an effective way to measure a single company against it’s peers.

Index Methodology

  • The selection pool is composed of companies that derive the majority of their revenue from Carrier or Large Enterprise WAN applications and customers.
  • Re-balancing of the index is performed once each year. The selection pool is ranked according to market capitalization using the closing prices of the last trading day in May, and outstanding shares for the quarter during ending calendar Q1; for most companies this is 3/31. No adjustments are made for the float
  • Index buys and sells are executed using the closing price of the last Friday of June, unless the date falls on the 28th, 29th, or 30th, then the previous Friday is used.
  • IPO’s are added at re-balancing. IPOs performed after May 31 will be subject to ranking in the following year.
  • Cash/Equity proceeds from the merger or acquisition of a component company are not sold or re-invested until the next balancing period.
  • Dividends are re-invested at the next re-balancing
  • Stocks without published financials are not included