Investment Products Linked to the Indexes Expected to be Launched Soon
NEW YORK (Nov. 8, 2001) — Dow Jones Indexes today launches style indexes measuring growth and value stocks in Canada.
The Dow Jones Canada Growth and Value Indexes will add to already existing Dow Jones Style Indexes from the U.S. and the Dow Jones STOXX Growth and Value indexes from Europe. The indexes are part of Dow Jones Indexes’ global index family. Early next year, Dow Jones Indexes will launch style indexes for each of its European countries.
Michael Petronella, managing director of Dow Jones Indexes said, “The Dow Jones Canada Growth and Value Indexes will provide investors an additional asset allocation tool and give pension plans more precise benchmarks to measure the performance of their asset managers. The indexes are designed like their U.S. and European counterparts using two forward, two current and two historical criteria to more accurately identify value and growth companies.”
Dow Jones Indexes expects to license the first exchange-traded funds based on the Dow Jones Canada Style Indexes within a few weeks.
Stocks in the Dow Jones Canada Growth and Value Indexes are categorized as either value or growth stocks according to six factors, rather than one or two as most existing style indexes use. This multi-factor methodology produces a superior measure of the Canadian market’ growth and value segments. The six fundamental factors are:
| Projected Factors: | 1. Projected P/E | 2. Projected Earnings Growth |
| Historical Factors: | 1. Trailing P/E | 2. Trailing Earnings Growth |
| Current Factors: | 1. Book Value | 2. Dividend Yield |
Growth stocks tend to deliver steady and somewhat predictable revenue and earnings growth. Value stocks are out of favor but appear capable of returning to fair value.
The Dow Jones Canada Growth and Value index series is free-float market capitalization weighted and comprises twelve indexes: Large-Cap Growth, Large-Cap Value, Mid-Cap Growth, Mid-Cap Value, Small-Cap Growth and Small-Cap Value, Total Market Growth and Total Market Value, TopCap Value and TopCap Growth, and LowCap Value and LowCap Growth.
The Dow Jones Canada TopCap Growth and Value indexes are calculated and disseminated real-time through all major data vendors. The suggested ticker symbol for the TopCap growth index is DJCNTG and for the TopCap value index DJCNTV. For all other Dow Jones Growth and Value indexes end of day values are available at http://www.djindexes.com