Market Overview

KBW Announces Index Rebalancing for Fourth-Quarter 2017


Keefe, Bruyette & Woods, Inc., a full‐service, boutique investment bank
and broker‐dealer that specializes in the financial services sector, and
a wholly owned subsidiary of Stifel Financial Corp. (NYSE:SF), announces
the upcoming index rebalancing for the fourth quarter of 2017.

This quarter there are constituent changes within five of our indexes,
including the KBW Nasdaq Financial Sector Dividend Yield Index
(TICKER:KDX), the KBW Nasdaq Global Bank Index (Index
Ticker: GBKX), the KBW Nasdaq Premium Yield Equity REIT Index
(TICKER:KYX), and the KBW Nasdaq Regional Banking Index

There are a number of changes to the two
modified-dividend-yield-weighted indexes – KDX and the KYX – to adjust
annually for relevant dividend yields and ensure the integrity of these
indexes. Both KDX and KYX are specifically constructed to include those
eligible companies with competitive dividend yields.

These changes will be effective prior
to the opening of business on Monday,
December 18, 2017.

As part of this rebalancing, below are the component level changes
across various indices:


KBW Nasdaq Financial Sector Dividend


Add (9):


AmTrust Financial Services, Inc. (NASDAQ:AFSI)

Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI)

Dynex Capital, Inc. (NYSE:DX)

Janus Henderson Group Plc (NYSE:JHG)

Newtek Business Services Corp. (NASDAQ:NEWT)

Northwest Bancshares, Inc. (NASDAQ:NWBI)

Oxford Lane Capital Corp. (NASDAQ:OXLC)

Stellus Capital Investment Corporation (NYSE:SCM)

United Bankshares, Inc. (NASDAQ:UBSI)


Delete (9):

Apollo Investment Corporation (NASDAQ:AINV)

ARMOUR Residential REIT, Inc. (NYSE:ARR)

First American Financial Corporation (NYSE:FAF)

Gladstone Capital Corporation (NASDAQ:GLAD)

Greenhill & Co., Inc. (NYSE:GHL)

PennantPark Investment Corporation (NASDAQ:PNNT)

Resource Capital Corp. (NYSE:RSO)

Umpqua Holdings Corporation (NASDAQ:UMPQ)

Waddell & Reed Financial, Inc. (NYSE:WDR)


KBW Nasdaq Financial Technology Index


Add (1):

Black Knight, Inc. (NYSE:BKI)


KBW Nasdaq Global Bank Index (Index
Ticker: GBKX)


Add (1):

Royal Bank of Canada (Toronto:RY.CN)


KBW Nasdaq Premium Yield Equity REIT


Add (10):

Ashford Hospitality Prime, Inc. (NYSE:AHP)


EPR Properties (NYSE:EPR)

Farmland Partners Inc. (NYSE:FPI)

Hersha Hospitality Trust (NYSE:HT)

Kite Realty Group Trust (NYSE:KRG)

MedEquities Realty Trust, Inc. (NYSE:MRT)

Pennsylvania Real Estate Investment Trust (NYSE:PEI)

Ramco-Gershenson Properties Trust (NYSE:RPT)

Tanger Factory Outlet Centers, Inc. (NYSE:SKT)


Delete (9):

CBL & Associates Properties, Inc. (NYSE:CBL)

Global Medical REIT, Inc. (NYSE:GMRE)

Gramercy Property Trust (NYSE:GPT)

Investors Real Estate Trust (NYSE:IRET)

MGM Growth Properties LLC Class A (NYSE:MGP)

Preferred Apartment Communities, Inc. (NYSE:APTS)

RLJ Lodging Trust (NYSE:RLJ)

STAG Industrial, Inc. (NYSE:STAG)

Xenia Hotels & Resorts, Inc. (NYSE:XHR)


KBW Nasdaq Regional Banking Index (Index
Ticker: KRX; ETF Ticker: KBWR)


Add (3):

Chemical Financial Corp. (NASDAQ:CHFC)

First Hawaiian, Inc. (NASDAQ:FHB)

Home Bancshares, Inc. (NASDAQ:HOMB)


Delete (3):

BOK Financial Corp. (NASDAQ:BOKF)

S&T Bancorp, Inc. (NASDAQ:STBA)

Westamerica Bancorp (NASDAQ:WABC)


BOKF, STBA, and WABC failed to meet the minimum monthly average daily
trading volume requirement for continued inclusion.

Several of the KBW Nasdaq indices have tradable exchange‐traded funds
licensed: KBW Nasdaq Bank Index (Index Ticker: BKXSM, ETF
Ticker: KBWBSM); KBW Nasdaq Capital Markets Index (Index
Ticker: KSXSM); KBW Nasdaq Insurance Index (TICKER:KIX);
KBW Nasdaq Regional Banking Index (Index Ticker: KRXSM, ETF
Tickers: KBWRSM); KBW Nasdaq Financial Sector Dividend Yield
KBW Nasdaq Premium Yield Equity REIT Index (Index Ticker: KYXSM,
ETF Ticker: KBWYSM); KBW Nasdaq Property and Casualty
Insurance Index (TICKER:KPX, NASDAQ:KBWP);
KBW Nasdaq Global Bank Index (TICKER:GBKX); KBW
Nasdaq Financial Technology Index (Index Ticker: KFTXSM, ETF
Ticker: FTEK.LNSM).

About KBW

KBW (Keefe, Bruyette & Woods, Inc., operating in the U.S., and Stifel
Nicolaus Europe Limited, also trading as Keefe, Bruyette & Woods Europe,
operating in Europe) is a Stifel company. Over the years, KBW has
established itself as a leading independent authority in the banking,
insurance, brokerage, asset management, mortgage banking and specialty
finance sectors. Founded in 1962, the firm maintains industry‐leading
positions in the areas of research, corporate finance, mergers and
acquisitions as well as sales and trading in equities securities of
financial services companies.

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