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Dow Jones Adds To Volatility, Dividend Ranges
By Staff | 10 February, 2012

Dow Jones Indexes has expanded its family of Volatility Risk Control Indexes and introduced six new dividend indices.

The Dow Jones Global Titans 50 Volatility Risk Control Indexes offer investors access to equity markets using two gauges targeting predetermined levels of market volatility of 10 percent and 15 percent. It achieves its target by dynamically allocating between the underlying index, which is the Dow Jones Global Titans 50 Index, and a cash component.

“Given the skittish markets in 2011, it’s understandable there is demand for index products that are able to capably target a volatility level for a defined equity basket,” said Mike Petronella, president at Dow Jones Indexes. “We believe these new indexes will serve as useful and reliable tools for those seeking to assess risk.”

The index provider launched the family of volatility risk indices in September of last year and has designed the new additions for licensing to JP Morgan and Barclays Capital.

The new dividend indices have been licensed to Unicredit to serve as the basis for certificates to be issued in Austria and Germany. They six new products are: the Dow Jones UK Select Dividend 20 Distributing Index; the Dow Jones US Select Dividend Distributing Index; the Dow Jones Canada Select Dividend Distributing Index; the Dow Jones Asia/Pacific Select Dividend 30 Distributing Index; the Dow Jones Australia Select Dividend 30 Distributing Index; and the Dow Jones Switzerland Select Dividend 15 Distributing Index.

These indices use the index provider’s distributing methodology, which combines the performance of the underlying index with a theoretical cash component, reflecting the dividends paid by the component companies every six months.




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