Dow Jones Indexes today launched new style indexes measuring growth and value stocks in Canada.
The Dow Jones Canada Growth and Value Indexes add to already existing Dow Jones Style Indexes from the United States, and the Dow Jones STOXX Growth and Value indexes from Europe.
Michael Petronella, managing director of Dow Jones Indexes said, “The Dow Jones Canada Growth and Value Indexes will provide investors an additional asset allocation tool and give pension plans more precise benchmarks to measure the performance of their asset managers. The indexes are designed like their U.S. and European counterparts using two forward, two current and two historical criteria to more accurately identify value and growth companies.”
Dow Jones Indexes expects to license the first exchange-traded funds based on the Dow Jones Canada Style Indexes within a few weeks.
Stocks in the Dow Jones Canada Growth and Value Indexes are categorized as either value or growth stocks according to six factors, rather than one or two as most existing style indexes use.
The six fundamental factors are:
- projected P/E;
- projected earnings growth;
- trailing P/E;.
- trailing earnings growth/
- book value; and
- dividend yield.
The Dow Jones Canada Growth and Value index series is free-float market capitalization weighted and comprises twelve indexes: Large-Cap Growth, Large-Cap Value, Mid-Cap Growth, Mid-Cap Value, Small-Cap Growth and Small-Cap Value, Total Market Growth and Total Market Value, TopCap Value and TopCap Growth, and LowCap Value and LowCap Growth.
The Dow Jones Canada TopCap Growth and Value indexes are calculated and disseminated real-time through all major data vendors. The suggested ticker symbol for the TopCap growth index is DJCNTG and for the TopCap value index DJCNTV.