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Products December 13, 2010
New Index Tracks Companies that Fight against Diseases
Dow Jones Indexes is launching a new index in collaboration with the
Global Fund, which will help generate resources for the Global Fund's
work.
Reported by PLANADVISER staff
The Dow Jones Global Fund 50 Index measures the performance of the largest companies that support the mission of the Global Fund, which includes fighting AIDS, tuberculosis and malaria. A portion of revenues generated through the licensing of the index will go to the Global Fund.
A press release said the Dow Jones Global Fund 50 Index is the flagship of a new index series, which will include indexes with overlaying strategies and additional themes. The index has been licensed to db X-trackers, the leading ETF platform of Deutsche Bank, to serve as a basis for a financial product, the db x-trackers Global Fund Supporters ETF. The ETF begins trading December 13 on the Frankfurt stock exchange.
The Dow Jones Global Fund 50 Index universe of eligible securities is created according to the methodology of the Dow Jones Total Stock Market Indexes. The top 50 companies (based on float-adjusted market capitalization) that contribute to the mission of the Global Fund are selected for the index. Float-market capitalization measures the amount of shares in a company that are readily available to be traded by investors.
No more than 15 companies are selected from any individual country. The weight of individual countries is capped at 40% and single components are capped at 20%. The composition of the index is reviewed annually, in June. Float factors, shares and weights are updated quarterly.