Dow Jones Indexes Adds To RBP Roster

April 21, 2011

 

Dow Jones Indexes, one of the world’s leading index providers, is adding four new U.S. large-cap benchmarks to its series of Dow Jones RBP Indexes.

The style-based Dow Jones RBP U.S. Large-Cap Growth Index, Dow Jones RBP U.S. Large-Cap Value Index and Dow Jones RBP U.S. Large-Cap Core Index will rely on the same quantitative strategy Dow Jones already employs in its other 18 RBP large-cap indexes, which is based on Transparent Value’s rules-based analytics.

Each benchmark, comprising 100 U.S. large-cap stocks, selects securities based on the probability a company has of delivering a performance that would support its current stock price, as measured by a methodology the company calls the Required Business Performance (RBP), the company said in its website.

The growth index picks from a pool consisting of the top 750 U.S. growth stocks by market capitalization, with Google, Priceline and Apple being its biggest holdings. The value-based stock portfolio currently holds CME Group, Goldman Sachs and PPG Industries as its top names, while the core index is a blend of the two, holding the top 50 names in each of the other two portfolios.

Also launched was the Dow Jones RBP U.S. Dividend Index, the first within the RBP lineup to rely on dividends as the key measure used to select and weight stocks, the company said in a press release.

The dividend-focused index mixes large- and midcap stocks from the Dow Jones U.S. Large-Cap Total Stock Market Index and the Dow Jones U.S. Mid-Cap Total Stock Market Index.

The indexes are rebalanced quarterly.

 

 

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