Dow Jones says it has issued the first exchange-traded fund (ETF) licenses for funds linked to the performance of the Dow Jones Banks Titans 30, Dow Jones Technology Titans 30 and Dow Jones Healthcare Titans 30. The licenses have gone to Credit Suisse Asset Management, which will list the new ETFs for trading at the SWX Swiss Exchange tomorrow (Thursday, October 24, 2002).
“The Dow Jones Sector Titans indexes offer exposure to the global market,” says Michael A. Petronella, managing director of Dow Jones Indexes. “They allow investors to add a global sector component to their portfolios in an easy and efficient way. Also, as some sectors, especially banks, technology and healthcare, become more global and consolidated it is important to offer the largest and most liquid sector leaders. The components of the Dow Jones Sector Titans Indexes are also among the most actively traded stocks in the market.”
The Dow Jones Sector Titans Indexes are a family of 18 indexes that represent the leading companies in each of the following market sectors: Basic Resources, Chemicals, Automobiles, Cyclical Goods and Services, Media, Retail, Food and Beverage, Non-Cyclical Goods & Services, Energy, Banks, Financial Services, Insurance, Healthcare, Construction, Industrial Goods and Services, Technology, Telecommunications and Utilities.
Each Dow Jones Sector Titans includes the 30 largest and most liquid securities for that sector in the world. As of October 21, 2002, the free-float market capitalization for the indexes is the following: Dow Jones Banks Titans Index 1200 billion Euro, this covers 58% of the free-float market capitalization of the respective Dow Jones World Index Market Sectors. Dow Jones Technology Titans with 900 billion Euro and 57% coverage. Dow Jones Healthcare Titans with 1400 billion Euro and 72% coverage.
The Dow Jones Sector Titans indexes are rules-based, free-float market capitalization weighted, and individual components and weights for each sector index are capped at 10% to prevent dominance by any company.