Yonder 40 Index (Yonder 40)

What is ‘Yonder 40 Index – Yonder 40’

A list of 40 publicly traded companies chosen for their ties to rural areas. The Yonder 40 is designed to reflect the economies of non-urban areas, and includes companies that are involved in agriculture and livestock raising, in addition to heavier industries such as construction. The index is not widely-followed.

Explaining ‘Yonder 40 Index – Yonder 40’

The Yonder 40 Index was popularized by Jim Branscome and John Borden – two veterans of Wall Street. They felt that the major indexes were too focused on companies operating in urban environments, and that the health of urban companies didn’t properly take into account how rural Americans were faring.

Despite the decidedly outside the big city intent, the original incarnation of the index covered several popular firms, such as ConAgra and Wal-Mart.

Further Reading

  • Portfolio greenness and the financial performance of REITs – www.sciencedirect.com [PDF]
  • The economic effects of owner distance and local property management in US office markets – academic.oup.com [PDF]
  • Environmental performance and the cost of capital: evidence from commercial mortgages and REIT bonds – papers.ssrn.com [PDF]
  • Environmental performance and the cost of debt: Evidence from commercial mortgages and REIT bonds – www.sciencedirect.com [PDF]
  • Distance Effects in CMBS Loan Pricing: Banks versus Non-Banks – papers.ssrn.com [PDF]
  • REIT environmental performance and the cost of equity – books.google.com [PDF]