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Two of the largest companies in the world, Microsoft Corp. (NASDAQ: MSFT) and Wal-Mart Stores Inc. (NYSE:WMT), were added to the Dow Jones U.S. Contrarian Opportunities Index, it was announced today.
The index is designed to systematically measure the performance of stocks that lag behind the broader market in terms of recent performance, but outrank their peers based on fundamentals and other qualitative criteria.
Including Microsoft (the world’s sixth-largest company, measured by free-float market capitalization) and Wal-Mart Stores (37th-largest), a total of 64 companies were added to -- and 62 deleted from -- the index as part of a regular semi-annual review by Dow Jones Indexes, , a leading global index provider. Following the review, the Dow Jones U.S. Contrarian Opportunities Index now has 125 components, up from 123; all changes are effective after the close of trading on August 19, 2011.
Following Microsoft and Wal-Mart Stores (two of 30 companies that comprise the Dow Jones Industrial Average), the top components -- measured by free-float market capitalization -- to be added to the Dow Jones U.S. Contrarian Opportunities Index are: Qualcomm Inc. (NASDAQ: QCOM), MasterCard Inc. Class A (NYSE; MA) and Norfolk Southern Corp. (NYSE; NSC ); the top five components measured by free-float market capitalization to be deleted from the Index are: Exxon Mobil Corp. (NYSE: XOM), ConocoPhillips (NYSE: COP), Hewlett-Packard Co. (NYSE: HPQ), Texas Instruments Inc. (NYSE: TXN) and Honeywell International Inc. (NYSE: HON).
The Dow Jones U.S. Contrarian Opportunities Index is a transparent, rules-based tool for benchmarking contrarian investment strategies. The index’s universe is the Dow Jones U.S. Broad Stock Market Index, which comprises the largest 2,500 U.S. stocks by float-adjusted market capitalization. The Dow Jones U.S. Contrarian Opportunities Index is equal weighted and reviewed semi-annually in January and July with changes taking effect in February and August.
As of August 10, 2011, the float-adjusted market capitalization of the reconstituted Dow Jones U.S. Contrarian Opportunities Index decreased to $1.07 billion from $1.23 billion.
Dow Jones Select MicroCap Index
Meanwhile, Dow Jones Indexes’ regular annual review of the Dow Jones Select MicroCap Index added 160 components, while subtracting 118; as a result, the total number of components in the index increases to 241 from 199.
The Dow Jones Select MicroCap Index tracks the performance of U.S. micro-cap companies listed on the New York Stock Exchange, NYSE Amex and NASDAQ that are comparatively liquid and have strong fundamentals relative to the micro-cap segment as a whole.
The top five components by free-float market capitalization added to the Dow Jones Select MicroCap Index are: Wright Medical Group Inc. (NASDAQ: WMGI), Hyperdynamics Corp. (NYSE: HDY), Sturm Ruger & Co. (NYSE: RGR), Navigant Consulting Inc. (NYSE: NCI) and Badger Meter Inc. (NYSE: BMI); the top five components by free-float market capitalization to be deleted from the index are: Buckeye Technologies Inc. (NYSE: BKI), Select Comfort Corp. (NASDAQ: SCSS), Elizabeth Arden Inc. (NASDAQ: RDEN), First Industrial Realty Trust Inc. (NYSE: FR) and Strategic Hotels & Resorts Inc. (NYSE: BEE).
The free-float market capitalization of the reconstituted Dow Jones Select MicroCap Index increased to $66.81 billion from $57.41 billion, as of August 10, 2011.
