Dow Jones Indexes Launches Growth And Value Indexes For Canada. Investment Products Linked To The Indexes Expected To Be Launched Soon
Date 08/11/2001
Dow Jones Indexes today launches style indexes measuring growth and value stocks in Canada.
The Dow Jones Canada Growth and Value Indexes will add to already existing Dow Jones Style Indexes from the U.S. and the Dow Jones STOXX Growth and Value indexes from Europe. The indexes are part of Dow Jones Indexesà global index family. Early next year, Dow Jones Indexes will launch style indexes for each of its European countries.
Michael Petronella, managing director of Dow Jones Indexes said, "The Dow Jones Canada Growth and Value Indexes will provide investors an additional asset allocation tool and give pension plans more precise benchmarks to measure the performance of their asset managers. The indexes are designed like their U.S. and European counterparts using two forward, two current and two historical criteria to more accurately identify value and growth companies."
Dow Jones Indexes expects to license the first exchange-traded funds based on the Dow Jones Canada Style Indexes within a few weeks.
Stocks in the Dow Jones Canada Growth and Value Indexes are categorized as either value or growth stocks according to six factors, rather than one or two as most existing style indexes use. This multi-factor methodology produces a superior measure of the Canadian market' growth and value segments. The six fundamental factors are:
New Page 1
|
Projected
Factors:
|
1.
Projected P/E;
|
2.
Projected Earnings Growth
|
|
Historical
Factors:
|
1.
Trailing P/E;
|
2.
Trailing Earnings Growth
|
|
Current
Factors:
|
1. Book
Value;
|
2.
Dividend Yield
|
Growth stocks tend to deliver steady and somewhat predictable revenue and earnings growth. Value stocks are out of favor but appear capable of returning to fair value.
The Dow Jones Canada Growth and Value index series is free-float market capitalization weighted and comprises twelve indexes: Large-Cap Growth, Large-Cap Value, Mid-Cap Growth, Mid-Cap Value, Small-Cap Growth and Small-Cap Value, Total Market Growth and Total Market Value, TopCap Value and TopCap Growth, and LowCap Value and LowCap Growth.
The Dow Jones Canada TopCap Growth and Value indexes are calculated and disseminated real-time through all major data vendors. The suggested ticker symbol for the TopCap growth index is DJCNTG and for the TopCap value index DJCNTV. For all other Dow Jones Growth and Value indexes end of day values are available at www.djindexes.com
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, the Dow Jones Global Indexes, the Pan-European Dow Jones STOXX Indexes, the Dow Jones U.K. Titans 50, the Dow Jones Canada 40, the Dow Jones Japan 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 Group 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, 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.
