Dow Jones launches shipping index

Dow Jones Indexes has launched a shipping index, which which measures the performance of 25 leading dividend-paying companies in the shipping industry.

The index universe includes all companies involved in the shipping industry globally that primarily transport goods and materials. Companies solely involved in carrying passengers are excluded. A company must also have a minimum float-adjusted market capitalization of $150 million and a three-month average daily trading volume of $2 million. From this universe, the 25 stocks ranked highest by indicated annual dividend yield, subject to buffers that aim to limit unnecessary turnover, are selected for the index.
 
“The Dow Jones Global Shipping Index is designed to include companies that are poised to benefit from the global business recovery,” said Michael A. Petronella, President, Dow Jones Indexes. “These same component companies are also in position to take advantage of growing emerging-market demand for commodities and other goods.”
 
The index is weighted by float-adjusted market capitalization. The weight of individual components in the index is capped at 20%, and components with weights of 4.5% or more are restricted in aggregate to 45% of the index.
 
The Dow Jones Global Shipping Index is reviewed annually in June. Price and total return indexes are calculated in U.S. dollars.

The Dow Jones Global Shipping Index has been licensed to Guggenheim Funds to serve as a basis for the Guggenheim Shipping ETF.

www.djindexes.com