Dow Jones Europe Titans 80 Volatility Risk Control,
Dow Jones Eurozone Titans 80 Volatility Risk Control Indexes
Support Dow Jones Indexes' Expansion Plans in Europe
Dow Jones BRIC 50 Volatility Risk Control Indexes to Track Performance
of Leading Stocks, at Various Levels of Volatility, in Four Key Countries
LONDON, Sept. 13, 2011 (GLOBE NEWSWIRE) -- Dow Jones Indexes, a leading global index provider, today announced the launch of three series of indexes designed to target various levels of volatility.
The new index families are:
- the Dow Jones Europe Titans 80 Volatility Risk Control Indexes;
- the Dow Jones Eurozone Titans 80 Volatility Risk Control Indexes; and
- the Dow Jones BRIC 50 Volatility Risk Control Indexes.
Each series includes four indexes targeting predetermined levels of market volatility (5%, 10%, 15%, 20%) by dynamically allocating between an underlying index and a cash component represented by EONIA (Euro OverNight Index Average) . Volatility levels are reflected in the index by leveraging (up to 150%) or deleveraging (relative to cash) exposure to the equity components in the underlying index.
The Dow Jones Europe Titans 80 Volatility Risk Control and Dow Jones Eurozone Titans 80 Volatility Risk Control Indexes are the latest examples of Dow Jones Indexes' expanded offerings for the European region; in June 2011, the firm launched two European blue-chip stock gauges, the Dow Jones Europe Titans 80 Index and the Dow Jones Eurozone Titans 80 Index, measuring leading companies within each region and the indexes on which the new volatility risk control indexes are based.
"In an uncertain marketplace, the volatility risk control indexes offer a tool for investors who are increasingly looking for ways to gauge levels of risk in their portfolio," said Michael A. Petronella, President, Dow Jones Indexes. "And the new Europe and Eurozone indexes clearly underline our commitment to expanding our suite of indexes in Europe."
In keeping with the long-established methodology Dow Jones Indexes uses to create and maintain its other "Titans"-branded indexes, the blue-chip indexes underlying the Dow Jones Europe Titans 80 Volatility Risk Control Indexes and Dow Jones Eurozone Titans 80 Volatility Risk Control Indexes follow a more-robust methodology than their competitors, with float-adjusted market capitalization, revenue and net profit used as selection criteria. The indexes track the performance of leading stocks that trade in the developed markets of Europe and the Eurozone.
The Dow Jones BRIC 50 Volatility Risk Control Indexes are based on the Dow Jones BRIC 50 Index, which measures -- by size and liquidity -- leading stocks traded in the Brazil, Russia, India and offshore China markets.
"With the Dow Jones BRIC 50 Volatility Risk Control Indexes, we are able to track the performance of leading companies, at various levels of volatility, in four key countries," said Mr. Petronella.
The indexes' 30-day realized volatility is calculated daily. Allocation adjustments are made only if the index formula specifies an allocation change (either positive or negative) of 5% or more relative to the previous day's index level.
The indexes are weighted based on float-adjusted market capitalization, subject to a 10% cap.
Calculation of the Dow Jones Volatility Risk Control indexes began on September 13, 2011. Back-tested historical data have been calculated daily back to February 28, 2003 the date at which the indexes' base value was set at 1000.
The Dow Jones Volatility Risk Control Indexes were first published on 13 September 2011. All estimated daily historical closing prices prior to that date are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Back-tested performance information is purely hypothetical and is solely for informational purposes. Back-tested performance does not represent actual performance, and past performance is not indicative of future results.
Journalists may e-mail questions regarding this press release to media@djindexes.com.
About Dow Jones Indexes
Dow Jones Indexes (www.djindexes.com) is a leading full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best-known for the Dow Jones Industrial Average, Dow Jones Indexes offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is part of a joint venture company owned 90 percent by CME Group Inc. (www.cmegroup.com) and 10 percent by Dow Jones & Company, Inc. (www.dowjones.com), a News Corporation company (Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV) (www.newscorp.com).
"Dow Jones®", "Dow Jones Indexes", "Dow Jones Europe Titans 80 Volatility Risk Control Indexes", "Dow Jones Eurozone Titans 80 Volatility Risk Control Indexes" and "Dow Jones BRIC 50 Titans 80 Volatility Risk Control Indexes" are service marks of Dow Jones Trademark Holdings LLC ("Dow Jones"), and have been licensed for use by CME Group Index Services LLC ("CME Indexes"). "Titans" is a service mark of CME Indexes. "CME" is a trademark of Chicago Mercantile Exchange, Inc. Investment products based on the aforementioned Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of Dow Jones, CME Indexes and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the aforementioned Indexes does not in any way reflect an opinion of Dow Jones, CME Indexes or any of their respective affiliates on the investment merits of such company. None of Dow Jones, CME Indexes or any of their respective affiliates is providing investment advice in connection with these indexes.
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