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Dow Jones Industrial Average Licensed to Underlie ETF in Japan for the First Time

CALCOLATRICE

Dow Jones Indexes, a leading global index provider, announced the Dow Jones Industrial Average (the Dow) has been licensed to

Simplex Asset Management Co., Ltd., a leading and independent investment management firm in Japan, to underlie an exchange-traded fund (ETF).

This is the first time that the Dow Jones Industrial Average serves as underlying of a Japan-based ETF. The Simple-X NY Dow Jones Index ETF is scheduled to start trading on the Tokyo Stock Exchange on December 10, 2009.

 

“The Dow Jones Industrial Average, the iconic and most widely cited U.S. market indicator, tracks the stock performance of the 30 largest and most liquid U.S. companies. Simplex Asset Management has set a milestone by selecting the Dow as underlying for the very first U.S. stock market ETF in Japan. For the first time, Japanese market participants can now further diversify their existing portfolios with U.S. blue-chip coverage,” said Michael A. Petronella, president, Dow Jones Indexes.

 

The Dow Jones Industrial Average is a price-weighted index that tracks 30 of the biggest and most widely recognized blue-chip stocks in the United States. “The Dow”, as it is commonly known, belongs to the Dow Jones Averages family. Originally created by Charles Dow in 1896 to gauge the new industrial economy, the term “industrial” is broadly defined so the index accurately reflects the performance of the U.S. stock market today, covering such diverse industries as financial services, technology, retail, entertainment and consumer goods.

 

To calculate the Dow, the sum of the stock prices are divided by an index divisor, which is used to adjust for stock splits and other corporate actions that may affect the index’s composition.

Source: ETFWorld – Dow Jones Indexes

 

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