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Dow Jones Indexes, a leading global index provider, today announced the Dow Jones Global Select Dividend Index has been licensed to First Trust Portfolios L.P. to serve as the basis of an exchange-traded fund (ETF). The First Trust Dow Jones Global Select Dividend Index Fund begins trading today at the American Stock Exchange.
This is the first time the index, which tracks the performance of the top 100 dividend-paying companies worldwide, will underlie an ETF. The Dow Jones Global Select Dividend Index was launched in October 2007.
“Demand for the Dow Jones and Dow Jones STOXX Select Dividend Indexes by the global investment community has grown substantially since we first launched the Dow Jones U.S. Select Dividend Index in 2003. To satisfy this demand we have expanded this innovative index family to track high -yielding stocks in North America, Europe and the Asia-Pacific, the latest being the Dow Jones Global Select Dividend Index. To date there are 14 ETFs globally that are based on our widely popular select dividend index series,” said Michael A. Petronella, president of Dow Jones Indexes.
To be eligible for inclusion in the Dow Jones Global Select Dividend Index, a component must have a positive dividend growth rate over the past five years and a dividend-to-earnings-per-share ratio of less than or equal to 60% for U.S. and European companies and 80% for all other countries. Each stock also must have a minimum three-month daily average trading volume of $3 million USD.
Each company's weight in the Dow Jones Global Select Dividend Index is based on its indicated annual dividend yield. The indicated annual dividend yields for all components are totaled, and each component's weight is equal to its dividend yield contribution. The weight of individual components in the index is restricted to 10% in order to prevent the index from being dominated by a single high-dividend paying stock.
The Dow Jones Global Select Dividend Index is reviewed annually in December. Price and total return indexes are calculated in U.S. dollar. Daily historical index values are available back to December 31, 1998, with a base value set at 100.
The Dow Jones and Dow Jones STOXX Select Dividend Index series consists of the Dow Jones STOXX Select Dividend 30 Index, Dow Jones EURO STOXX Select Dividend 30 Index, Dow Jones STOXX NORDIC Select Dividend 20 Index, Dow Jones STOXX EU Enlarged Select Dividend 15 Index, Dow Jones STOXX Americas Select Dividend 40 Index, Dow Jones STOXX Asia/Pacific Select Dividend 30 Index, Dow Jones STOXX Global Select Dividend 100 Index, Dow Jones Select Dividend Indexes for Asia, Asia/Pacific and EPAC regions, as well as the following countries: Australia, Canada, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, the U.K., the U.S., and the Dow Jones SWX Select Dividend 20 Index (Switzerland).
Components, weightings and performance figures for the Dow Jones Global Select Dividend Index can be found at www.djindexes.com.
