Dow Jones Creates 130/30 Investment Strategy Indexes

The likelihood that a company will deliver the performance required to support its current stock price is measured according to Transparent Value’s proprietary RBP methodology.

The Dow Jones RBP Large-Cap 130/30 Indexes, the first indexes in the series, use the RBP probability metrics to create 130/30 investment strategy indexes based on U.S. large-cap stocks, according to the announcement.

The index universe for the Dow Jones RBP Large-Cap 130/30 Indexes includes all stocks in the Dow Jones Wilshire U.S. Large-Cap Index. RBP probability scores are calculated by Transparent Value for each of the 750 companies in the Dow Jones Wilshire U.S. Large-Cap Index. The 30 stocks with the highest RBP probability scores become components of the Dow Jones RBP Large-Cap Leading 30 Index, and the 30 stocks with the lowest RBP probability scores become components in the Dow Jones RBP Large-Cap Lagging 30 Index. Components for the Dow Jones RBP Large-Cap Leading and Lagging 30 indexes are subject to a screen that requires components to have a three-month average daily trading volume of at least $2.5 million.

The Dow Jones RBP Large-Cap 130/30 Index measures the performance of the 750 stocks in the Dow Jones Wilshire U.S. Large-Cap Index as well as an additional 30% long position in the Dow Jones RBP Large-Cap Leading 30 Index and 30% inverse exposure to the Dow Jones RBP Large-Cap Lagging 30 Index, the announcement explained. The Indexes are rebalanced on a quarterly basis.

The Dow Jones RBP Large-Cap Growth 130/30 Index and Dow Jones RBP Large-Cap Value130/30 Index are also available and follow the same methodology as the broader index. They are derived from the Dow Jones Wilshire U.S. Large-Cap Growth Index and Dow Jones Wilshire U.S. Large-Cap Value Index, respectively.

More information can be found at www.dowjonesRBP.com.