Dow Jones Indexes To License Yield-Oriented, Multi-Asset Class Index for New ArrowShares ETF
The ETF — the first to launch under Arrow Investment Advisors’ new exchange-traded product line branded ArrowShares — was launched and will trade on NYSE Arca.
The Dow Jones Global Composite Yield Index, also launched today, is designed to reduce concentration risk by tracking five yield-oriented baskets — each one a 30-component subindex launching today — that provide equally weighted exposure to traditional and alternative sources of income across multiple asset classes.
The five Dow Jones Global Composite Yield Index subindexes are:
- Dow Jones Global Equity Yield Index: measures high dividend-paying stocks selected from developed and emerging markets;
- Dow Jones Global Real Estate Yield Index: measures high dividend-paying real estate stocks selected from developed and emerging markets;
- Dow Jones Global Alternative Yield Index: measures high dividend-paying preferred shares, master limited partnerships and royalty trusts selected from developed and emerging markets;
- Credit Suisse Yield Enhanced Global Corporate Index: measures higher-yielding corporate bonds selected from developed and emerging markets; and
- Credit Suisse Yield Enhanced Sovereign Index: measures higher-yielding sovereign bonds selected from developed and emerging markets.
The Credit Suisse Yield Enhanced Global Corporate and Credit Suisse Yield Enhanced Sovereign Indexes are provided by the Credit Suisse’s Global Index and Alpha Strategies Group.
“We developed the Dow Jones Global Composite Yield Index in response to the strong demand for yield in the current market environment,” said Michael A. Petronella, President of Dow Jones Indexes. “This new index is an innovative and diversified measure of yield across multiple asset classes that offer exposure to traditional and alternative sources of income.”
Key methodology features of the subindexes include:
- Securities are equally weighted;
- Components are selected from yield-based rankings, subject to screens; and
- The review procedures allow for the dropping of securities between scheduled reconstitutions if they fail to meet minimum requirements.
Journalists may direct questions regarding this press release to Dow Jones Indexes press office.
About Dow Jones Indexes
Dow Jones Indexes (www.djindexes.com) is a leading full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best-known for the Dow Jones Industrial Average, Dow Jones Indexes offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is part of a joint venture company owned 90 percent by CME Group Inc. (www.cmegroup.com) and 10 percent by Dow Jones & Company, Inc. (www.dowjones.com), a News Corporation company (Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV) (www.newscorp.com).
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“Dow Jones®”, “Dow Jones Indexes” and “Dow Jones Global Composite Yield Index” are service marks of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by CME Group Index Services LLC (“CME Indexes”). Investment products based on the Dow Jones Global Composite Yield Index are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of Dow Jones, CME Indexes and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of an instrument in the Dow Jones Global Composite Yield Index or any of its sub-indexes does not in any way reflect an opinion of Dow Jones, CME Indexes or any of their respective affiliates on the investment merits of such instrument. None of Dow Jones, CME Indexes or any of their respective affiliates is providing investment advice in connection with these indexes.
“Credit Suisse” and the names identifying the Credit Suisse Yield Indexes are service marks of Credit Suisse AG. The Credit Suisse Yield Indexes are published by Credit Suisse First Boston Data & Analytics LLC and are used in the Dow Jones Global Composite Yield Index with Credit Suisse’s consent.