NEW YORK, Nov. 17, 2010 (GLOBE NEWSWIRE) -- Dow Jones Indexes, a leading global index provider, today announced the launch of the Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index. This is the first index within the Dow Jones Golden Crossover Indexes family.
"This index is among the first to take systemic risk into consideration – a risk that cannot be diversified away," said Michael A. Petronella, president, Dow Jones Indexes. "Since risk is such a vital factor to investing, this index is an excellent tool to provide investors information that may indicate changing market conditions," added Petronella.
The Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index applies the "Moving Average Crossover System," as it is commonly known, to U.S. large-cap equity securities. The index itself uses rebalancing signals based on two simple moving averages: trailing 50 business days and trailing 200 business days. The "Golden Cross" signal occurs when the 50-day moving average of the closing prices of the components of the underlying index crosses above the 200-day moving average. This signal may be considered to indicate the end of a "down" trend and the start of the new "up" trend. The "Dead Cross" signal occurs when the 50-day moving average of the closing prices of the components of the underlying index crosses below the 200-day moving average. This signal may be considered to indicate the end of the "up" trend and the start of the new "down" trend.
The Dow Jones Golden Crossover Indexes are designed to dynamically reallocate component weights between an underlying equity index and a cash index according to the occurrence of Golden Cross and Dead Cross signals. During Golden Cross periods, the indexes track only the underlying equity index. During Dead Cross periods, a portion of the index is allocated toward the underlying equity index, and a portion toward the cash index. The Dow Jones Golden Crossover Index is monitored on a daily basis and rebalanced when a signal is triggered.
The Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index is calculated in U.S. dollars and is published daily. Calculation of the index began on November 17, 2010. Estimated daily back-tested history is available back to December 31, 1999.(1)
Based on back-tested estimated historical data, as of November 15, 2010, the Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index is up 2.16% YTD.
For more information on the Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index, please visit www.djindexes.com.
(1)The Dow Jones Golden Crossover U.S. Large-Cap Total Stock Market Index was first published on November 17, 2010. 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). Back tested performance information is purely hypothetical and is solely for informational purposes. Back tested performance does not represent actual performance, and past performance is not indicative of future results.
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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).
"Dow Jones®", "Dow Jones Indexes" and "Dow Jones Golden Crossover Indexes" 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 Golden Crossover Indexes 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 a company or cash instrument in any of the Dow Jones Golden Crossover 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 company or instrument. None of Dow Jones, CME Indexes or any of their respective affiliates is providing investment advice in connection with these indexes.
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