About a year ago, NASDAQ announced  a new index called the NASDAQ OMX Government Relief Index (QGRI) that would track the performances of companies that participated in any government sponsored relief program, such as the Troubled Asset Relief Program (TARP). It wasn’t limited to just TARP participants, it would also include companies that received government investment. It would begin its life at 1,000.
So how did it fare?
It was a wild ride but it opened this morning up a few percentage points! (1,087.97)
The index sank as low as 400 and rose as high as 1,094.27, according to Google Finance, making for quite a swing. While it’s not entirely fair to compare QGRI to the S&P 500, we will anyway. If you look back one year, the S&P has gained over 28% while the QGRI is up almost 20%. (a chart comparing the two ).
So do you think the government made a good investment in these too big to fail companies? 🙂