It turns out that clever and memorable stock tickers (e.g. LUV for Southwest Airlines; ZZ for mattress company Sealy) are more than just clever and memorable stock tickers – they also help boost the performance of the stocks they signify. Today’s article cites a study from the Journal of Financial Markets which found that “stocks benefit from the ‘likability’ and ‘pronounceability’ of their ticker symbols.” The author examines whether the same holds true for ETFs (for which catchy tickers are common practice) and provides some evidence that ETFs with catchy tickers (e.g. HACK for a cyber security ETF) attract more assets. To read more about these findings – including what the takeaways should be for investors – CLICK HERE.
What’s In A (Clever Stock Ticker) Name? Possibly Superior Performance
- by Bob Mitchell