S&P Dow Jones Indices LLC (/daʊ/) is a joint venture between S&P Global,

the CME Group, and News Corp that was announced in 2011 and later
launched in 2012. It produces, maintains, licenses, and markets stock market
indices as benchmarks and as the basis of investable products, such as
exchange-traded funds (ETFs), mutual funds, and structured products. The
company currently has employees in 15 cities worldwide, including New York,
London, Frankfurt, Singapore, Hong Kong, Sydney, Beijing, and Dubai.

S&P Dow Jones Indices LLC

Trade name S&P Dow Jones Indices

Type Joint venture of S&P Global, CME Group and Dow

Jones & Company, which is a subsidiary of News
Corp

Founded 1882

Founder Charles Dow, Edward Jones, Charles Bergstresser

Headquarters 55 Water Street, New York, NY

Parent S&P Global

(with CME Group and News Corp as minority
partners)

Website www.spindices.com

The company's best known indices are the S&P 500 and the Dow Jones
Industrial Average (DJIA), which was created in 1896. The company also
manages the oldest index in use, the Dow Jones Transportation Index,
created in 1882 by Charles Dow, the founder of The Wall Street Journal.

Indices defined

A market index (plural: indices) follows a certain market and gives investors a
single number to summarize its ups and downs. It enables the world's
institutional (and retail) investors to track a market or market sector without
having to aggregate the underlying components. It is a convenient way for
someone interested in a broad, narrow, or extremely narrow group of
securities to track them.
Pension funds and other money managers often use indexes as benchmarks.
This means that "active" investors (those who pick various securities to buy
and hold for their returns) track their own returns against a benchmark index
(an index that typifies its market) to see if they are out- or under-performing
that market. Investors who do not want to do this (those who buy into indexes
or securities that use indexes as their basis) are called "passive" investors.
They are known to link their portfolios to the broad market and do not try to
outguess conventional market wisdom. Passive investors argue that almost
no active investors can beat the overall markets in the long-term. This choice
is described by a theory in investing called the efficient market hypothesis.

Indices by S&P Dow Jones

The DJI has over 130,000 indexes, although many are used by only relatively
few people. Most are principally equity (stock) indexes but also contain fixed-
income, futures, options, private equity, commodity, currency, bond, and other
alternative asset class metrics. Dow Jones Indexes says that all its products
are maintained according to clear, unbiased, and systematic methodologies
that are fully integrated within index families.

DJI and Sustainable Asset Management (SAM), launched the Dow Jones
Sustainability Indices in 1999. These indexes track performance of
sustainability-driven companies around the world. There are currently 70 DJSI
licensees held by asset managers in 16 countries to manage a variety of
financial products, including active and passive funds, certificates and
segregated accounts.

DJI partnered with AIG to create the Dow Jones-AIG Commodity Index. It
tracks trades on futures contracts for physical commodities, like energy
(petroleum, gas), precious metals (gold, silver), industrial metals (zinc,
copper), grains (corn, wheat), livestock (lean hogs, live cattle), among others.

UBS Securities LLC has acquired AIG Financial Product Corp.'s commodity
business as of May 6, 2009. As such, the Dow Jones-AIG Commodity Indexes
have been re-branded as the Dow Jones-UBS Commodity Indexes effective
May 7, 2009.

The Dow Jones Select Dividend Indexes reflects the performance of leading
dividend-yielding stocks. It includes global and regional indexes. It was DJI's
first fundamentals-driven index.
Dow Jones Indexes also does "specialty" indexes for specific markets or
interests. It has the Dow Jones U.S. Economic Stimulus Index, the Olympic-
inspired Dow Jones Summer/Winter Games, the race-car centric Dow Jones
Formula 1 Index and the closely followed Dow Jones Luxury Index, among
others.

Companies can also request that specific indexes be created to suit their
clients' interest or for publicity purposes. This is popular with smaller asset
management and public relations firms.

Recent history

DJI launches an average of one index or index family per week. It often
creates an index for a specific event (i.e. Dow Jones 2008 Summer Games
Index, launched December 2007), a specific market (Dow Jones Luxury Index,
launched June 2008), or a very small market (Dow Jones Cyprus Titans 10
Index). In some instances it cooperates with other entities to create a custom
index (Barron’s 400 Index, launched September 2007).

Dow Jones Industrial Average historical data (along with several other major
indexes) recently became available on a new website, www.djaverages.com.
The company also has a widely read quarterly newsletter called Insights that
covers the industry.

Recent notable developments at DJI

March 2008 – Chicago Climate Exchange, Inc. (CCX), the world's first and
North America's only voluntary, legally binding, integrated greenhouse gas
emissions reduction registry and trading system, announced that Dow Jones
Indexes and Sustainable Asset Management had granted CCX a license for
the Dow Jones Sustainability World (DJSI World) and Dow Jones
Sustainability North America Indexes (DJSI North America). The contracts are
listed on CCX's wholly owned subsidiary Chicago Climate Futures Exchange
(CCFE), the world's leading environmental derivatives exchange. They trade
emissions credits and DJI makes the indexes that are based on them.

July 2008 – DJI partnered with Brookfield Asset Management (BAM) to

develop the Dow Jones Brookfield Infrastructure Indexes. This index series
was designed to serve as benchmarks of companies that own and operate
key infrastructure assets, like toll roads, pipelines and ports.
July 2007 – The Iowa Peace officers Retirement System has adopted the Dow
Jones Wilshire Index Family (now called the Dow Jones Total Stock Market
Indexes; see below). These indexes are popular benchmarks for pension
funds looking to minimize risk and market exposure. They used the Dow
Jones Wilshire 5000sm (now called the Dow Jones U.S. Total Stock Market
Index), to benchmark its equity investment portfolio.

August 2008 – News Corp. Chairman Rupert Murdoch announced a new

worldwide benchmark index—the Global Dow. It will comprise 150 stocks
around the world that will include large companies in established markets, but
also rising stars in emerging markets as well as companies specializing in
new technologies. Murdoch made the announcement in Mumbai, India,
emphasizing its global outlook.

April 2009 – Dow Jones rolled out the Dow Jones Total Stock Market (TSM)
Indexes. They were designed to provide comprehensive coverage of the U.S.
equity market. Its flagship index was intended to be the Dow Jones U.S. Total
Stock Market Index, an all-inclusive measure composed of all U.S. equity
securities with readily available prices. It is sliced according to stock-size
segment, style and sector to create distinct sub-indexes that track every major
segment of the market. DJI claims that the indexes were created and
maintained according to an objective and transparent methodology with the
fundamental aim of providing reliable, accurate measures of U.S. equity
performance.[1]

June 1, 2009 – DJI changed the components of the famous benchmark Dow
Jones Industrial Average. It cut Citigroup and GM – both of which were
trading at or under $1 per share (and both of which, after receiving Federal
bailout money, were practically government wards). They were replaced by
insurance giant Travelers and IT pioneer Cisco Systems.

June 2009 – Later that month, Dow Jones Indexes announced a joint
marketing agreement with LVA Indices (Chile,[2]) and Proveedor Integral de
Precios (PIP) to create a new series of corporate and government fixed
income indexes called Dow Jones Latixx Indexes [1] . It started with dozens
of Mexican and Chilean bonds, with plans to move into Costa Rica, Peru,
Argentina, Brazil, Colombia and Venezuela. In February 2010, it added 22 new
bonds from Chile and Mexico. In October 2010, it launched Peruvian bond
indexes and on June 8, 2011, it added four Costa Rican bond indexes.

Fall 2009 – Dow Jones Indexes was named Most Innovative ETF Index
Provider 2009 for the Americas by exchangetradedfunds.com
October 2009 – The Dow Jones GCC Titans 50 Real Return Index became the
basis for the first exchange traded fund (ETF) in the United Arab Emirates
(UAE). The licensee is National Bank of Abu Dhabi (NBAD). The index
measures the performance of 50 leading component stocks traded in the six
Gulf Cooperation Council (GCC) member states: Bahrain, Kuwait, Oman, Qatar,
Saudi Arabia and United Arab Emirates.[3] That same month, DJI launched
DJIM Greater China Index. It has been licensed to ETFs in Malaysia and other
countries.

November 2009 – Charles Schwab licensed five Dow Jones Total Stock
Market (TSM) Size and Style indexes for exchange traded funds. It is "Chuck's"
first proprietary line of ETFs. In that same month, the Dow Jones Industrial
Average was licensed by Simplex Asset Management in Japan to underlie an
ETF. This is the first time the DJIA was licensed to a Japanese ETF. It
launched in December 2009.

January 2010 – DJI announced that the Dow Jones Corporate Bond Index
would serve as the basis of the first fixed-income exchange-traded note (ETN)
available in Israel. This was the first time the index has been licensed as the
basis for an exchange-traded product globally. The ETN is sponsored by Harel
SAL, a subsidiary of Harel Finance, and is available on the Tel Aviv Stock
Exchange (TASE). In addition to the Dow Jones Corporate Bond Index, Dow
Jones Indexes licensed the Dow Jones Brazil Titans 20 Index as the basis for
an Israeli ETN that was listed at the TASE.

February 10, 2010 – Dow Jones and CME Group announced an agreement to
form a joint venture to operate a global financial index services business. The
definitive agreement is set to provide for CME Group to own 90% of the
venture to which Dow Jones will contribute its Dow Jones Indexes business
valued at $675 million. Dow Jones is expected to hold the remaining 10% and
retain a key role in the management of the Dow Jones Industrial Average.
CME Group will contribute a business which provides certain market data
services said to be valued at $607.5 million to the joint venture. The new joint
venture will also raise approximately $613 million in third-party debt which will
be used to pay a $607.5 million distribution to Dow Jones. The deal was
expected to close in the 1st quarter 2010 since it passed regulatory
clearance.[4]

March 4, 2010 – Dow Jones Indexes signed a memorandum with The Global
Fund to Fight AIDs, Tuberculosis, and Malaria to explore the creation of a
family of indexes that could be licensed as the basis for investment products.
The first is expected to be called the Dow Jones Global Fund 50 Index, which
would most likely focus on Blue Chip stocks. Both The Global Fund and Dow
Jones Indexes hoped to benefit from this collaboration. The Global Fund
wants to further strengthen its engagement with the private sector and bring
to bear the power of financial markets to help its efforts around the world.
The Global Fund is a leading multilateral financing organization in global
health with commitments with more than US$19 billion to date. Dow Jones
Indexes intended to add to its range of socially conscious indexes that will
complement its increasingly diverse range of products.[5]

December 2010 – The Dow Jones Global Fund 50 Index was launched, based
on 50 large companies that support The Global Fund's activities. It was
licensed to db X-trackers, the leading ETF platform of Deutsche Bank, to serve
as a basis for a financial product, the db x-trackers Global Fund Supporters
ETF. The ETF begins trading today on the Frankfurt stock exchange.

March 18, 2010 – CME Group and Dow Jones Indexes officially launched the
new joint venture (JV). CME Group has 90% ownership.

April 8, 2010 – The new JV continued to create new products, such as the
Dow Jones Contrarian Opportunities Index, which went live on April 8, 2010. It
is a rules-based index that has a “contrarian” investment strategy focusing on
companies with strong recent fundamentals but a lagging three-year-trailing
return. The index has been licensed to Javelin Investment Management to
underlie an exchange-traded fund (ETF) on the NYSE Euronext. It is the only
index family that tracks the contrarian investing strategy.

March 24, 2010 – The Dow Jones UAE 25 Index, which measures the
performance of the 25 of the largest and most liquid equity securities trading
in the United Arab Emirates (UAE), came into being. It was licensed to
National Bank of Abu Dhabi (NBAD) and underlies the first exchange-traded
fund (ETF) in the UAE. The NBAD OneShare Dow Jones UAE 25 ETF was to be
listed at the Abu Dhabi Stock Exchange as well.

April 18, 2010 – Jamie Farmer was named Executive Director of DJI. He had
been Senior Director of Global Index Operations and Head of Exchange
Relationships.

May 3, 2010 – The Dow Jones RBP Index added four new indexes. These
indexes track "required business performance" of companies. It has three
directional strategy indexes and one fundamentally weighted U.S. market
index (Dow Jones RBP U.S. Large-Cap Aggressive Index, the Dow Jones RBP
U.S. Large-Cap Defensive Index, and the Dow Jones RBP U.S. Large-Cap
Market Index). They were created with Transparent Value, LLC, which is a
Guggenheim Partners company. There is a video explaining the way that the
methodology and the indexes work
(https://web.archive.org/web/20110309234327/http://www.djindexes.com/
media/?playlist=videos Dow Jones RBP Index video).

August 2011 – A Shari'ah-compliant index was added to the RBP suite.

June 8, 2010 – DJI (now part of CME Group)launched Dow Jones CME
FX$INDEX. It serves as the basis of a new futures contract (CME Group is the
world leader in derivatives, including futures). The new index combines six
currency futures and represents the relative value of the U.S. dollar versus six
major currencies (the Australian dollar, British pound, Canadian dollar, Euro,
Japanese yen, and Swiss franc).

July 2010 – The Dow Jones Long-Term Inflation Indexes were launched. They
measure Treasurys and TIPS to gauge the market's expectations on inflation.
The indexes measure the difference between futures on 30-year TIPS and
Ultra-Long bonds. They were chosen for their length, transparency and
liquidity, according to the company's press release. They were developed in
cooperation with Credit Suisse.

September 9, 2010 – The company launched the Dow Jones Sustainability

Indexes in Europe, continuing its long history in sustainability indexing for
socially conscious investors. They were made to complement the global Dow
Jones Sustainability index series. They include broad benchmark as well as
blue chip indexes for Europe and the Euro zone. They were made together
with longtime collaborator Sustainable Asset Management. The top five
components of the index are Nestle S.A., HSBC Holdings PLC (UK Reg),
Novartis AG, Total S.A. and Banco Santander S.A.

September 14, 2010 – The company came out with the Dow Jones Emerging
Markets Consumer Titans 30 Index, which measures the performance of 30
leading consumer goods and consumer service companies in emerging
markets. This is important as consumer spending is considered a leading
indicator in markets and the broader economy. The index was licensed to
Emerging Global Advisors, LLC and will serve as a basis for an exchange-
traded fund (ETF), to be listed on NYSE Arca. It is called the EGShares
Emerging Markets Consumer ETF – the first emerging market ETF focused on
consumer trends in the developing world.

October 7, 2010 – DJI launched the Dow Jones MENA (Middle East/North
Africa) Broad Stock Market and Dow Jones Saudi Titans 30 Indexes.[6]

October 28, 2010 – The Dow Jones U.S. Venture Capital Index is launched
with partner firm Sand Hill Econometrics. It is the first index that tracks the
venture capital market, not just publicly traded stocks that started as venture
capital-funded start-ups. It follows companies with VC funding, including
shut-downs and buyouts.

November 17, 2010 – Dow Jones Indexes announces the Dow Jones Golden
Crossover U.S. Large-Cap Total Stock Market Index, the first index within the
Dow Jones Golden Crossover Indexes family.

November 30, 2010 – SAM and Dow Jones Indexes launch the Dow Jones
Sustainability Nordic Index (DJSI Nordic).

December 20, 2010 – DJI announced a new country classification system that
will apply to all countries covered in its major index families. The
implementation of the new system was set to begin in March 2011. Countries
would be separated into "Developed," "Emerging," and "Frontier" markets.
http://press.djindexes.com/index.php/dow-jones-indexes-to-introduce-a-new-
country-classification-system/

January 19, 2011 – DJI licensed Dow Jones U.S. Mid-Cap Total Stock Market
Index and the Dow Jones U.S. Select REIT Index to Charles Schwab in an
expansion of Schwab’s proprietary exchange-traded funds (ETFs) platform.
Schwab U.S. REIT ETF™ (SCHH) and the Schwab U.S. Mid-Cap ETF™ (SCHM),
both of which began trading in January 2011, on NYSE Arca.

February 22, 2011 – DJI launched the Dow Jones Islamic Market Global
Finance & Takaful Index, which measures the performance of financial
services stocks that pass rules-based screens for Shari’ah compliance.
(Insurance stocks that pass such screens are known as Takaful.)

February 28, 2011 – iShares (a long-time licensor of Dow Jones Indexes

products) created two equity sustainability-based ETFs based on Dow Jones
Sustainability World Enlarged ex All/AE Index and the Dow Jones
Sustainability Europe ex All/AE Index.

March 1, 2011 – Company launched Dow Jones Brookfield Emerging Markets

Infrastructure Index with partner Brookfield Asset Management. It tracks
builders and owners/operators of property, power and infrastructure assets in
developing nations.

May 11, 2011 – To celebrate the 115th anniversary of the Dow Jones
Industrial Average, Editor and Executive Director John Prestbo led a panel
discussion for a media audience at NYSSA.
https://web.archive.org/web/20110509064526/http://www.djindexes.com/m
edia/?playlist=press-events
The City of New York also declared the day to be "Dow Jones Industrial
Average Day."

May 4, 2011 – The company worked with forex trading company FXCM to
design the Dow Jones FXCM Dollar Index. It weighs the US dollar against a
basket of the four currencies against which it trades the most: the euro, the
British pound, the Japanese yen and the Australian dollar.

June 2011 – DJI launches Dow Jones Europe Titans 80 and Dow Jones
Eurozone Titans 80 Indexes. They have blue chip companies from Western
Europe. The latter includes only Eurozone countries while the former includes
UK, Switzerland and other non-Eurozone countries. In September, they
launched volatility risk-control versions of these indexes as well as the Dow
Jones BRIC 50 Volatility Risk Control Indexes.

July 27, 2011 – The Dow Jones Global Shipping Index is launched. It tracks
25 top dividend-paying companies in global shipping.

August 8, 2011 – The company worked with UBS to Dow Jones-UBS Roll
Select Commodity Index. It seeks to mitigate effects of contango and
backwardation in commodities indexing and investing.

September 7, 2011 – FFCM LLC’s QuantShares family of seven exchange-

traded funds (ETFs) licensed all seven indexes from the Dow Jones U.S.
Thematic Market Neutral Indexes series.

Later that month, Dow Jones Indexes and BBVA jointly launched the Dow
Jones BBVA EAGLEs Indexes series, which initially includes two market
gauges each designed to measure the stock performance of 50 leading
companies in emerging and growth-leading economies (EAGLEs). The first set
of EAGLEs included China, Indonesia, India, South Korea, Mexico, Taiwan,
Brazil, Russia, Turkey and Egypt.

October 18, 2011 – The company announced two global versions of The Dow:
The Europe Dow and The Asia Dow. Each will be made up of 30 well-known,
sought after and admired companies in each region. The Europe index only
includes Western European countries and the Asia index includes Japan
alongside China, Taiwan, Hong Kong and others.

Research information

The company produces a quarterly news magazine called Insights.[7] The

company has topical Market Commentary videos,[8] video interviews[9] and
press events[10] for researchers, academia and market makers to use.
See also

S&P Global

Dow Jones Industrial Average

Index (economics)

CME Group

Dow Jones & Company

Dow Jones Sustainability Index

Sustainable Asset Management

References

1. "Dow Jones Indexes | 2009 Press Release Archive" . Djindexes.com.

Archived from the original on February 18, 2012. Retrieved June 14, 2013.

2. "LVA Indices" . LVA Indices. Retrieved June 14, 2013.

3. Saudi Gazette. "Dow Jones launches GCC Titans 50 index" . Saudi Gazette.
Archived from the original on July 12, 2010. Retrieved June 14, 2013.

4. "Latest News Headlines" . NASDAQ.com. Retrieved June 14, 2013.

5. "The Global Fund to Fight Aids, Tuberculosis & Malaria, Dow Jones Indexes
Sign Memorandum to Explore Creation of Co-branded Indexes" . The Global
Fund to fight AIDS, Tuberculosis and Malaria. March 5, 2010. Archived from the
original on June 9, 2011.

6. "Dow Jones Indexes Launches MENA Broad Stock Market and Saudi Titans
30 Indexes" . press.DJIndexes.com. October 7, 2010. Retrieved May 19,
2014.

7. "S&P Dow Jones Indices – Insights, Spring 2014" .

dowjonesindexesinsights.com.

8. "Dow Jones Indexes » Media Center » Market Commentary" . djindexes.com.

Archived from the original on July 28, 2011.

9. "Dow Jones Indexes » Media Center » Video Interviews" . djindexes.com.

Archived from the original on August 3, 2011.

10. "Dow Jones Indexes » Media Center » Press Events" . djindexes.com.

Archived from the original on May 9, 2011.
External links

Official website