BBVA Bancomer licenses new blue-chip index to underlie exchange-traded fund.
NEW YORK (August 27, 2009) — Dow Jones Indexes, a leading global index provider, today announced the launch of the Dow Jones Mexico Titans 20 Index, which measures the largest and most liquid stocks traded in Mexico.
The Dow Jones Mexico Titans 20 Index has been licensed to BBVA Bancomer, a leading banking institution in Mexico, to serve as the basis of an exchange-traded fund (ETF) available today at Bolsa Mexicana de Valores.
“We have recently developed a greater breadth of indexes that gauge different asset classes and markets in Mexico. The Dow Jones Mexico Titans 20 Index measures the performance of the country’s leading blue-chip companies using an objective and rules-based methodology. The new index also provides broad sector diversification. With these qualities underlying the ETF by BBVA Bancomer, local investors are being offered a neutral and transparent investment option,” said Michael A. Petronella, president, Dow Jones Indexes.
The selection universe for the Dow Jones Mexico Titans 20 Index is defined as all stocks in the Dow Jones Mexico Total Stock Market Index, of which there are 32 currently. Companies are ranked first by float-adjusted market capitalization and then by 12-month average daily trading volume. Stocks are then ordered by an equally weighted combination of these size and liquidity rankings. The 20 top-ranked companies are selected as index components.
The top five components in the Dow Jones Mexico Titans 20 Index are America Movil S.A.B. de C.V. Series L, Wal-Mart de Mexico S.A.B. de C.V. Series V, Cemex S.A.B. de C.V. Series CPO, Fomento Economico Mexicano S.A.B. de C.V. and Carso Global Telecom S.A.B. de C.V.
The index is weighted by float-adjusted market capitalization and each component’s weight is capped at 10 percent. As of August 26, 2009, the Dow Jones Mexico Titans 20 Index is up 32.62% year to date.
The Dow Jones Mexico Titans 20 Index is reviewed annually in March, and component weightings are rebalanced on a quarterly basis. Back-tested historical data is available back to December 31, 19981. Further information can be found at http://djindexes.com.
1 The Dow Jones Mexico Titans 20 Index was first published on April 15, 2009. All estimated daily historical closing prices prior to that date are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Backtested performance information is purely hypothetical and is solely for informational purposes. Backtested performance does not represent actual performance, and past performance is not indicative of future results.