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About the HW 30 Equity Index

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Launched on Aug 1, 2013, the HW 30 equity index is designed to capture the heartbeat of those publicly-traded firms that represent the very backbone of what we at HousingWire have taken to calling the "housing economy" in the United States. Residential mortgage lending, servicing, investments, as well as real estate transactions represent nearly 1/3 of U.S. GDP annually -- yet prior to the HW 30, no exisitng equity index had attempted to capture this broad, important aspect of the U.S. economy. 

What makes this equity index unique are both its breadth (spanning multiple sectors), its brevity (we only include 30 firms), as well as the inclusion criteria we apply for firms participating in the index. The index is validated back to 2006, and is not currently available for trading activity.

Criteria for inclusion:

  • Bulk of company’s primary business affects the U.S.  housing economy; or the company’s business interests affect the a material portion of the U.S. housing economy (even if not a primary business).
  • 12+ months since IPO
  • US-domiciled companies only
  • Sufficient liquidity, measured by:
    • Avg monthly volume/shares outstanding: .3 NYSE/.6 NASDAQ
    • Absolute volume: should be actively traded
    • Stock price: should not fall deep into single digits, cannot stay below $5
  • Public ownership
    • 50% or more of the stock float must be held by outsiders
  • Fundamentals
    • At least four quarters of positive net operating income (exceptions can be made given industry's recent duress)
  • Market capitalization
    • There is no hard and fast capitalization requirements, except to state that the companies are generally recognized as leaders in their respective industries; this typically means preference for larger cap companies as these companies tend to be the leaders
  • Sector representation
    • We attempt to capture the relevant aspects of the U.S. housing economy: lending, servicing, investing and real estate operations
    • This requirement may lead to index rebalancing from time to time, irrespective of the above factors

Note: The HW 30 equity index, the term "housing economy," and methodology used to determine inclusion in the index are © HW Publishing LLC and it's affiliates. Unauthorized use of this protected material is prohibited.