Markit Data Explorers US Sector Sentiment Index

The Markit Data Explorers US Sector Sentiment Index is an investment strategy index developed to reflect sector level sentiment derived from stock lending and short-selling information. The index is designed to be used for portfolio benchmarking purposes as well as for the development of index-linked products such as index mutual funds, exchange traded funds, structured products and index futures and options.

Markit determines whether each sector within the index is overweight or underweight using the Data Explorers Sentiment Signal (DNS), which captures the sentiment relating to a security. A high DNS reflects negative sentiment or an increasing amount of short positions relative to long positions, indicating a desire to underweight a particular security in a portfolio. The index is rebalanced on a monthly basis in order to reflect current market sentiment for each sector.

For more detailed information, please download the factsheet