To take account of portions of share capital which are uninvestible, Dow Jones Indexes says it is changing the way equities in its Global Titans Index are weighted. The index aims to represent the core of blue-chip companies around the world.
The weighting of the equities in the index will be based on ‘free float’ rather than being based on the full number of shares outstanding, the index provider said. The change took effect June 18, after the first annual review of the index.
“This change, combined with the total transparency of the index methodology, eases replication and improves the suitability of the Dow Jones Titans Index as an underlying instrument for investment products,” says Peter Reitz, executive director, research and development, at Dow Jones Indexes.
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