A market cap weighted stock index of 400 publicly traded companies that have met certain standards of social and environmental excellence. Potential candidates for this index will have positive records on issues such as employee and human relations, product safety, environmental safety, and corporate governance. Companies engaged in the business of alcohol, tobacco, firearms, gambling, nuclear power and military weapons are automatically excluded. This relatively new index was designed to help socially conscious investors weigh social and environmental factors in their investment choices. Taobiz explains Domini 400 Social Index Socially conscious investing is a growing trend across many demographic and geographic areas, and having a social conscience may become a competitive advantage for corporations through their relationships with shareholders. The index is independently maintained by research firm KLD Research & Analytics, and aims to be comprised of chiefly large cap stocks in the S&P 500; the ranges break down as follows: 1. Approximately 250 companies in the S&P 500 2. 100 companies not in the S&P 500, but providing sector diversification and exceeding pre-determined market cap limitations 3. 50 companies that have shown excellence in their social and environmental dealings
A market capitalization-weighted index of 50 of the largest multinational companies in the world. The stock universe used for selection is the Dow Jones World Index, which includes approximately 95% of developed and emerging markets by market capitalization. The index members are chosen based on a ranking system that takes into account the free-float market cap, company sales and revenues, and net income levels. The 50 highest-ranking companies are included in the index for that year as long as they earn revenue both domestically and internationally. The index is reconstituted annually, and weightings are recalculated quarterly to account for changes in the float of member stocks. The index is calculated and reported in both U.S. dollars and euros. Taobiz explains Dow Jones Global Titans 50 Index As one might expect, U.S.-based companies dominate the index. For companies that trade on international exchanges, the price used to calculate the index on an intraday basis will be the previous closing price or current price of any American depositary receipts trading that day. Because the companies in the Global Titans 50 Index are known for their size and stability, the earnings valuation of the index as a whole tends to be lower than major market averages such as the S&P 500. As of March 2007, the index traded for less than 13-times forward earnings estimates while paying an above-market dividend yield.
A stock index that measures the financial performance of leading Eurozone companies as measured by their sustainability and environmental practices. The stock universe is the Dow Jones STOXX Sustainability Index, from which only companies operating in Eurozone nations (countries that have transitioned to the Euro) are chosen. Companies are given a sustainability score based on a comprehensive review by research firm SAM Group; annual surveys are conducted on all potential companies so that company progress and new initiatives can be constantly measured and compared against industry peers. The index is weighted based on free-float market capitalization and changes to the index are made annually after updated company sustainability scores have been obtained. Quarterly weighting adjustments are also made as the market caps of member companies fluctuate. Taobiz explains Dow Jones EURO STOXX Sustainability Index The sustainability score for each company is calculated using a comprehensive weighting system that looks at company efforts in areas such as climate change, energy efficiency, knowledge management, shareholder relations and corporate governance. In addition, companies are evaluated compared to their own industry, as each industry has its own parameters and inherent environmental issues. Sustainability is a long-term company strategy, and includes both economic and social costs that typically cannot be measured within a quarterly or annual time frame.
A market capitalization-weighted stock index of 50 large, blue-chip European companies operating within eurozone nations. The universe for selection is found within the 18 Dow Jones EURO STOXX Supersector indexes, from which members are ranked by size and placed on a selection list. Taobiz explains Dow Jones EURO STOXX 50 The largest 40 stocks on the selection list are automatically chosen for the EURO STOXX 50. Any grandfathered index components receive next priority, then stocks ranked between 41 and 60 are chosen to reach the final number of 50 stocks in the index. The index is reconstituted annually and the weightings updated once per quarter to account for changes in market caps. The EURO STOXX 50 closely resembles the Dow Jones STOXX 50 in methodology and construction, with the exception that only companies who have fully transitioned to the euro currency can be members of the EURO STOXX 50. As such, U.K.-based companies are excluded even though many large multinationals trade on the London Stock Exchange.
A market capitalization-weighted stock index containing 50 of the most liquid and largest companies operating in Brazil, Russia, India and China (BRIC nations). The index uses the Dow Jones Global Indexes as its stock universe for the four nations, which cover approximately 95% of the market capitalization on local exchanges. Fifteen positions are targeted for each Brazil, Russia and China, while Russia's representation is targeted for five positions. Taobiz explains Dow Jones BRIC 50 Index Selection for the index is based on a ranking system that looks equally at free-float market capitalization and average daily volume. The top 10 ranked stocks in each sub-index are selected, along with a customized selection of five more between the rankings of 11 and 20 (these numbers are prorated for Russia). The index is reconstituted annually and weightings are adjusted quarterly. No single stock can make up more than 10% of the BRIC 50 Index. BRIC investing has become a trendy strategy, as these nations represent large, developing economies that are becoming more and more involved in the global economy. China representation is sought only in the offshore market, where H-shares and American Depositary receipts are available on different stock exchanges.
A market capitalization-weighted index of Asia/Pacific stocks designed to capture the blue-chip leaders of the region. The stock universe is the Dow Jones Asia/Pacific Index, from which the 50 largest Japan-based and 50 largest non-Japan based stocks are selected. The two lists of 50 stocks are given final rankings based 60% on market cap, 20% on current revenues and 20% on current net income levels. The top 25 members are then chosen from each list for the Asian Titans Index, half of which will be made up of Japan-based companies. Taobiz explains Dow Jones Asian Titans 50 Index The index is reconstituted annually, with quarterly weighting updates to account for changes in market capitalization in the member stocks. Japan is often a large component of any Asia/Pacific index due to the maturity of its economy and stock exchange.The country dominates the top ranks of the Asian Titans 50 Index.
A composite index that measures changes within the 65 companies that make up three Dow Jones averages: the 30 stocks that form the Dow Jones Industrial Average (DJIA), the 20 stocks that make up the Dow Jones Transportation Average (DJTA) and the 15 stocks of the Dow Jones Utility Average (DJUA). The Dow Jones 65 Composite, like the three sub-indexes, is price-weighted. Taobiz explains Dow Jones 65 Composite Average All of the Dow Jones averages are price-weighted indexes. For this type of index, stocks with higher prices will influence the direction of the average more than lower prices, regardless of the actual size of the company. Most broad market indexes are market-cap weighted, such as the Nasdaq-100 and Standard & Poor's 500. The combination of the Dow Jones Industrial, Transportation and Utility averages used to be a broad measure of the U.S. economy, as those sectors were once the lion's share of economic production. This is no longer the case, as industries such as healthcare, technology and finance now include some of the largest companies in the world. While the DJIA has, in recent years, included some modern companies in its "industrial" average (such as Microsoft and Intel), most of the Dow Jones 65 stocks are focused in old-line businesses, and do not appear to represent a broad measure of economic performance.
A number used in the calculation of the Dow Jones Industrial Average that accounts for stock splits and stock dividends. Taobiz explains Dow Divisor While most market indexes are market-capitalization weighted, the DJIA (and other Dow Jones indexes) are price-weighted. That is, the DJIA was originally calculated by simply adding up the price of Dow components and dividing by the number of stocks in the index. (That's why it's called an average.) However, when companies had stock splits or gave out stock dividends, the stock prices changed even though the value of the company didn't. The index, because it is price-weighted, would be distorted. To solve this problem, Dow Jones introduced the Dow Divisor. It's modified downward to reflect corporate actions that don't fundamentally change the value of the company.