Yomiuri Shimbun Announces New Stock Index 'Yomiuri333'... Differentiated from Nikkei 225

Yomiuri Shimbun Announces 'Yomiuri333' Index
Index to Be Published Once Every Weekday Evening
Unlike Nikkei 225, Uses 'Equal Weighting' Method

Japan's Yomiuri Shimbun announced on the 24th the launch of a new stock index for the Japanese stock market called 'Yomiuri333'.

According to Yomiuri Shimbun on the 24th, the newspaper will publish the Yomiuri333 index once every weekday evening starting from that day. The Yomiuri333 is a stock index composed of 333 major stocks listed on the Tokyo Stock Exchange and other Japanese markets. The index is calculated with November 1985 as the base point set at 10,000 yen. The unit is measured in yen, the same as the Nikkei 225, and currently stands at around 34,000 yen.

The most distinctive feature of the Yomiuri333 is its use of an 'equal weighting' method. The Yomiuri333 reflects price changes of the 333 stocks equally at a rate of 0.3%. As a result, the influence of price fluctuations of any particular stock is minimized, and the index reflects the average price trend of the constituent stocks. Yomiuri explained, "It is not influenced by the movements of specific large corporations, allowing it to capture the growth of a variety of companies."

In contrast, the existing Nikkei 225 and the Japan Exchange Group's TOPIX use a 'price-weighted' method, where stocks with higher prices have a greater influence on the index.

The calculation and management of the index are handled by Nomura Trust Research & Consulting, a subsidiary of Nomura Holdings in Japan. Financial products linked to the Yomiuri333 will also be launched targeting individual investors. Asset management company Mitsubishi UFJ Asset Management will offer mutual funds and exchange-traded funds (ETFs) linked to the Yomiuri333. Other asset management firms are also reportedly preparing related products, which will be available for sale starting from the 26th.