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The Dow Jones sector classification comprises four levels - economic sectors, market sectors, industry groups and sub groups. It is altered from time to time to reflect changes in sector and industry developments in the stock market as well as in investor interest. The two highest levels of the four-level classification system - economic sectors and market sectors - have a high acceptance in the investment community and will remain unchanged in this round of improvements. These sectors are widely used for index-linked investment products such as exchange-traded funds and derivatives.
The number of industry groups on the third level will be raised to 51 from 40. And the fourth level sub industry groups will increase to 89 from 70. Most of the changes will occur in the third and fourth levels of two market sectors: Industry Goods & Services and Technology. For the most part, the changes provide a finer degree of granularity, allowing investors to track specific parts of the market.
For example, the Technology market sector was split between Hardware & Equipment and Software industry groups. Now it is split into five industry groups: Technology Hardware & Equipment; Communications Technology; Semiconductors; Technology Services, and Software.
These classification changes will be effective with the 2001 fourth-quarter review of the Dow Jones and Dow Jones STOXX indexes. Because the changes primarily result in a finer breakout of existing industry and sub-groups, turnover attributable to the changes in the classification system is expected to be nominal. Quarterly review results will be announced on December 7, 2001, for U.S. components and on December 19, 2001, for Dow Jones STOXX indexes.
STOXX Ltd. and Dow Jones Indexes are fully integrated and use the same index classification system. The Dow Jones STOXX Index family represents the European region of the Dow Jones Global Index family. Index methodology, component classification, float weighting factors, rule books and transparency are identical for the entire index family.
Dow Jones Indexes is a premier global provider of investable indexes, including the Dow Jones Averages, the Dow Jones Global Titans 50, the Dow Jones Asian Titans 50, the Dow Jones Sector Titans 30, the Dow Jones Global Indexes, the Pan-European Dow Jones STOXX Indexes, the Dow Jones U.K. Titans 50, the Dow Jones Canada Titans 40, the Dow Jones Japan Titans 100, the Dow Jones Total Market Index Series, the Dow Jones REIT Indexes, the Dow Jones-AIG Commodity Index, the Dow Jones Islamic Market Indexes, the Dow Jones Internet Indexes and the Dow Jones Sustainability Indexes. Dow Jones Indexes is part of Dow Jones & Company, which publishes the world's most vital business and financial news and information.
In addition to Dow Jones Indexes, Dow Jones & Company (NYSE:DJ; dj.com) publishes The Wall Street Journal and its international and online editions, Barron's and SmartMoney magazines and other periodicals, Dow Jones Newswires, Dow Jones Indexes, and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group PLC of Factiva and with NBC of the CNBC television operations in Asia and Europe. Dow Jones also provides news content to CNBC and radio stations in the U.S.
