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Chippewa Valley Center for Economic Research and Development

Eau Claire Basket Investment Track Project: 2005-Present

There are a variety of publically owned companies trading on the major stock exchanges located in the Chippewa Valley and Western Wisconsin employing a significant number of people. In an effort to provide information on these companies as well as on the overall stock market, the CVCERD began its Eau Claire Basket Investment Track Project in 2005.

The CVCERD collects and maintains stock market data for a list of publicly-owned companies that are of local or regional interest. Company performance is tracked through a simple investment basket called the Eau Claire Stock Basket (ECB) and is also compared to three other investment strategies.

The Eau Claire Area Stock Basket (ECB) consists of companies with an employment presence in the region including retail, manufacturing, dining and entertainment, health care and more. The 2013 ECB has 46 companies, but the ECB has included between 45-52 companies in past years. At the beginning of the year, each company gets an equal share of the initial $100,000 investment and then we see what happens.

The other three investments tracked represent variations of the Dow Jones Industrial (DJI), Standard & Poor's 500 (S&P) and gold. For the DJI we use the Dogs of the Dow (DOGS), for the S&P 500 we use the Guggenheim S&P Equal Weight exchange traded fund (RSP) and for gold we will use StreetTRACKS Gold exchange-traded fund (GLD).

Each year, the DOGS consists of the ten stocks in the DJI which have the highest dividend yield as of January 1. These companies are said to be a good investment value relative to other market investments. At the beginning of the year, each company gets an equal share of the initial $100,000 investment and then we see what happens. For more information on the DOGS see http://www.dogsofthedow.com/.

An exchange traded fund (ETF) is a type of investment company whose objective is to achieve the same return as a particular market index. For more
information about ETFs see http://www.sec.gov/answers/etf.htm.

RSP seeks investment results that correspond to the performance of the S&P Equal Weight Index (S&P EWI). The S&P EWI utilizes quarterly rebalancing to maintain its equal-weight stance. RSP gets an initial investment of $100,000 and then we see what happens. For more information on RSP see http://guggenheiminvestments.com/products/etf/details?productid=92.

GLD is sponsored by a unit of the World Gold Council and offers investors the ability to access the gold bullion market, with each share representing one-tenth of an ounce of gold. GLD gets an initial investment of $100,000 and then we see what happens. GLD does not pay dividends. For more information on GLD see http://www.statestreetspdrs.com/856/?c=856dm4&v=4.

This comparison is a weekly feature in the business section of the Leader-Telegram each Sunday. Quarterly and year-end reports are also prepared using these data and are released through stories in the local media and on our website.

If you have a further interest in this project or in any of the information presented such as a listing of the companies in the ECB and DOGS as well as access to the data or a more detailed analysis, please contact Eric Jamelske in Economics Department at the University of Wisconsin, Eau Claire at 715-836-3254, jamelsem@uwec.edu  or Liam Marlaire of the Leader-Telegram at 715-833-9215, liam.marlaire@ecpc.com.

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