Cubes and the Individual Investor

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  • Richard J. Curcio
  • Joanna M. Lipka
  • John H. Thornton Jr.

Published 2004, "Cubes and the Individual Investor", Financial Services Review, 2004- pp. 123–138 Volume 13


  • We investigate issues of importance to individual investors concerning Cubes, the NASDAQ-100 Index Tracking Stock. Individual investors are the major long-term holders of Cubes and they hold and trade proportionately more Cubes than Standard & Poors Depository Receipts. Nevertheless, individuals account for less than 50% of the daily trading volume in Cubes. Individuals investing in Cubes are protected from return dilution resulting from market timing and late trading devices like those possible with open-ended mutual funds. Cubes do demonstrate large, but rare, short-lived intraday deviations from net asset values, which appear not to present a significant problem except, possibly, for high frequency traders. © 2004 Academy of Financial Services. All rights reserved.