NEW YORK, Nov. 8, 2007 (PRIME NEWSWIRE) -- Dow Jones Indexes, a leading global index provider, today announced the Dow Jones High Yield 10 Total Return Index, a subset of the Dow Jones Industrial Average, has been licensed to ELEMENTS(sm), a new exchange-traded notes platform. The Dogs of the Dow ELEMENTS is issued by Deutsche Bank and starts trading at the NYSE Arca today.
The Dow Jones High Yield Select 10 Total Return Index (Bloomberg symbol MUTR) measures the top ten companies in the Dow Jones Industrial Average based on indicated annual dividend yield, a strategy commonly referred to as the "Dogs of the Dow" and which typically consists of holding these 10 Dow stocks for one year. Dividends are reinvested into the index and contribute to its overall level.
"Dow Jones Indexes adds transparency to the widely used 'Dogs of the Dow' strategy by applying a consistent index methodology and publishing monthly watch lists," said Michael A. Petronella, president, Dow Jones Indexes. "Licensing this unique index as the basis for an ETN will give market participants broad and easy access to the performance of the top yielding components in the Dow Jones Industrial Average."
The Dow Jones High Yield 10 Total Return Index is calculated using an equal-dollar weighted methodology. That means that each component stock is initially given equal weight in the index in December, after the components have been selected, and are allowed to change over the course of the year based on fluctuations in the stock prices. A watch list for the indexes is published monthly to provide an indication of what stocks may be included in the Dow Jones High Yield Select 10 Total Return Index when it is rebalanced at the end of the year. Dividend yield for each component is calculated based on updated indicated annual dividend data and the closing prices at the last trading day of the previous month.
Component list and index methodology is available on http://www.djindexes.com.
Journalists may e-mail questions regarding this press release to PR-Indexes@dowjones.com or contact Dow Jones Indexes/STOXX press office:
New York: +1-212-597-5720 Frankfurt: +49-69-29-725-290
Note to Editors:
About Dow Jones Indexes
A full-service index provider, Dow Jones Indexes 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 also is co-owner of the Dow Jones STOXX indexes, the world's leading pan-European indexes, and together with Wilshire Associates, provides the Dow Jones Wilshire Global Index family, which is anchored by the Dow Jones Wilshire 5000 and covers more than 12,000 securities in 59 markets. Beyond equity indexes, Dow Jones Indexes maintains a number of alternative indexes, including measures of the hedge fund and commodity markets. Dow Jones indexes are maintained according to clear, unbiased and systematic methodologies that are fully integrated within index families. www.djindexes.com
Dow Jones Indexes is part of Dow Jones & Company (NYSE:DJ) (dowjones.com), which is a leading provider of global business news and information services. Its Consumer Media Group publishes The Wall Street Journal, Barron's, MarketWatch.com, eFinancialNews and the Far Eastern Economic Review. Its Enterprise Media Group includes Dow Jones Newswires, Factiva, Dow Jones Client Solutions, Dow Jones Indexes and Dow Jones Financial Information Services. Its Local Media Group operates community-based information franchises. Dow Jones owns 50% of SmartMoney and 33% of STOXX Ltd. and provides news content to CNBC and radio stations in the U.S.
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