Financial Instrument Selection and Weighting System and Method

Abstract

A financial instrument formed by selecting and weighting securities according to selection and weighting criteria. A primary index may be constructed from a universe of securities meeting at least one selection criterion, and may optionally be weighted according to a selection criterion. Derivative indices may be constructed from the primary index. The derivative indices may be further screened and/or weighted according to the same or different selection criteria. Derivative indices may also be created from other derivative indices, again based on selection and/or weighting criteria. The primary index and any derivative indices may be ranked according to one or more selection criteria, either before or after derivative indices are constructed.

1 . A financial instrument, comprising:
 a first index comprising a first and second security, the first and second security having a positive dividend yield;
 the first security issued by a first affiliated entity, the first security comprising a first fundamental datum satisfying a first selection criterion; 
 the second security issued by a second affiliated entity, the second security comprising a second fundamental datum satisfying the first selection criterion; wherein 
   the first and second securities are ranked within the index according to the first selection criterion.