Dow Jones Indexes has added four indices to its family of Dow Jones Required Business Performance Indexes.
The new series includes three directional strategy indices and one fundamentally weighted US market index.
The three strategy indices are the Dow Jones RBP US Large-Cap Aggressive Index, the Dow Jones RBP US Large-Cap Defensive Index, and the Dow Jones RBP US Large-Cap Market Index.
The fundamentally weighted market index, the Dow Jones US Large-Cap Total Stock Market Index (RBP weighted), provides market participants with additional rules-based information to measure the valuation of publicly traded companies included in the index.
Dow Jones RBP US Large-Cap Aggressive Index, the Dow Jones RBP US Large-Cap Defensive Index, and the Dow Jones RBP US Large-Cap Market Index are licensed to Transparent Value, a Guggenheim Partners company, to underlie three mutual funds.
"The strategy indexes licensed to Transparent Value represent a brand new approach to indexing that combines the innovative RBP methodology with aggressive, defensive and neutral views of the market,” says Michael A. Petronella (pictured), president designate, Dow Jones Indexes. "Dow Jones RBP Indexes are quantitative strategy indexes built upon rules-based analytics providing a powerful tool set for measuring and evaluating component company valuation."
The indices were designed to measure the likelihood that companies can deliver the performance required to support their current stock prices. They are created using rules-based, published analytics, RBP probability scores, supplied by Transparent Value. Components of the Dow Jones RBP Indexes are selected based on their RBP probabilities.