I recently wrote about stock market indexes, and began to think about how there are different indexes for countries and wondered if there were any city or state specific ones? As much as I researched, I could only find an ETF for Nashville which has recently been liquidated. Their plans were to launch city-specific ETF’s if the Nashville investment vehicle was successful.
I have been a resident of Nashville Tennessee for almost 15 years and I have fallen in love with my adopted city and state. The area has also experienced tremendous growth during this time (correlation is not causation), and I’ve often wondered why there hasn’t been a good stock market measurement for this growth. So – I created my own stock market index. In fact, I created 2 of them.
The first is what I’m calling the “Tennessee Fifty”. It takes the 50 largest companies who have a headquarters in Tennessee. It is a price-weighted index as I wanted all companies to have an impact on the valuation. If it were market-cap weighted, the companies HCA, FedEx, Dollar General, AutoZone, and International Paper would account for about 60% of the index’s movement. I didn’t want something so top heavy. The beginning value is 100.00 as of January 1st 2019. I’ve included the DJIA as a reference as it is also a price-weighted index.
The second is what I’m calling the “Nashville Thirty”. It takes the 30 largest companies who have a headquarters in the Nashville area. It is a price-weighted index for the same reason I am using this method for TN50. Had I not, 2 companies (HCA and Dollar General) would account for about 60% of the Nashville index’s movement. The beginning value is 50.00 as of January 1st 2019. I’ve included the DJIA as a reference as it is also a price-weighted index.
The indexes will live under my Free Resources tab. Feel free to bookmark that page for future reference or forward/share the post to anyone who you think may find this interesting. With many corporate expansions and relocations coming soon, I wanted to create a tool so we can continue to measure the continued strength of Tennessee and the Nashville region. The best days of this area of ahead of it, and one day we’ll be able to think “Remember when these indexes were at 100 and 50? Look how far we’ve come.”
Full Disclosure: Nothing on this website should ever be considered to be advice, research or an invitation to buy or sell any securities. Please see the Disclaimer page for a full disclaimer.
About The Author
Shaun Melby, CFP® provides fee-only financial planning and investment management services in Nashville, TN. Melby Wealth Management serves clients as a fiduciary and never earns a commission of any kind. Shaun has over 10 years of experience as a financial advisor in Nashville.