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Dow Jones Indexes To License Two Israel Sector Indexes For New ETFs

ISRAELE1

Dow Jones Indexes, announced the launch of two sector indexes for Israel – the Dow Jones Israel Select Consumer Index and the Dow Jones Israel Select Oil & Gas Index – which it has licensed to KSM, a leading index product manager in Israel. ..


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Part of the Excellence Nessuah group, KSM will be adding the KSM Dow Jones Consumer Index ETF and the KSM Dow Jones Energy Index ETF to its expanded family of exchange-traded funds (ETFs), which collectively have AUM totaling $5.5 billion as of June 30, 2011. Both of the new KSM ETFs began trading today on the Tel Aviv Stock Exchange.

“The licensing of these two new indexes is indicative of growing interest among Israeli investors in a wider array of index-based products,” said Michael A. Petronella, President, Dow Jones Indexes. “These new indexes will allow investors to make more-precise investment decisions by considering the performance of individual sectors.”

Dow Jones Indexes and KSM have worked together before: in 2004, KSM licensed the iconic Dow Jones Industrial Average from Dow Jones Indexes to issue the KSM Dow Jones 30 – the first ETF traded in Israel.

The Dow Jones Israel Select Sector Indexes measure the performance of a select portion of equity securities trading on the Tel Aviv Stock Exchange, categorized into sectors as defined by Dow Jones Indexes’ proprietary classification system. Stocks in the index universe are screened based on specific size and liquidity criteria.

The composition of the indexes is reviewed quarterly in March, June, September and December. Weighting for the indexes is apportioned according to float-adjusted market capitalization, subject to a 15% weighting cap on each individual component within each sector.

The Dow Jones Israel Select Indexes was first calculated on January 31, 2011. Real index history is available daily from this date forward. Back-tested historical data have been calculated daily back to January 1, 2007, the date at which the index base value is set at 1000.

Source: ETFWorld – Dow Jones Indexes


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