Dow Jones Indexes announced January 19 that it has licensed the Dow Jones Canada
40 Index to State Street Global Advisors Canada, Ltd. for use as the basis of
an Index Participation Unit (IPU).
Fortune magazine isn’t the only new entry to hop on the Internet index
train. At least one more major Wall Street firm is piling on.
At the end of 1999, Banc of America Securities launched the third index in
its commerical mortgage-backed securities (CMBS) index family.
The combination of weak 1999 performance and recent changes in the composition
of the Dow Jones Industrial Average are raising doubts about the viability of
the famous contrarian investment strategy.
The options for investors looking for socially responsible index-linked funds
just got a little broader.
Goldman Sachs Group has joined rivals Salomon Smith Barney and Lehman Brothers
in offering debt securities linked to the performance of an Internet index.
Eurobonds have been getting a lot of attention from the indexing community
of late, from Merrill Lynch, Reuters, ParisBourse and Deutsche Börse, among
Standard & Poor’s doesn’t just want to go global covering the 25 or 30 more developed countries (see Global 1200 article nearby); it wants to be universal. Standard & Poor’s made that clear when it announced it would acquire the International Finance Corp.’s Emerging Markets Data Base which tracks over 2,200 stocks in 54 markets.
Vanguard Group isn’t in immediate danger, but there’s something gaining on it,
and it’s called Charles Schwab & Co. Vanguard, of course, owns the biggest and
best-known S&P500 index fund, and overall holds assets of some $500 billion.