Dow Jones Indexes has launched a series of Islamic indices in response to demands for “social-ethical and Islamic index investment”. And it expects exchange-traded funds based on the new indices to be launched soon.
The company says it has set up the global Dow Jones Islamic Market Titans 100 and three subset blue-chip indices – the Dow Jones US Islamic Titans 50, the Dow Jones European Islamic Titans 25 and the Dow Jones Asia/Pacific Titans 25.
Lars Hamich, head of business development at Dow Jones Indexes, says: “The Dow Jones Islamic Market Titans 100 has been created because of an increasing demand for social-ethical and Islamic index investment. The indexes offer market participants easy access to the largest and most liquid global companies that requirements for non-financial, low debt and social ethical markets.”
He adds: “We anticipate exchange-traded funds to be launched in the near future to complement the existing mutual funds and certificates based on the Dow Jones Islamic Index family.”
DJ says it screens stocks based on their industry type and financial ratios. It excludes companies involved in alcohol, tobacco, pork-related products, financial services, defence and entertainment. It then screens firms for “unacceptable” levels of debt.
The top five companies in its Islamic Market Titans 100 are: ExxonMobil, Microsoft, Pfizer, Johnson & Johnson and IBM. The European Islamic index is headed by Vodafone, BP, GlaxoSmithKline and TotalFinaElf.