The Global Dow℠ is a 150-stock index of the most innovative, vibrant and influential corporations from around the world. The underlying philosophy of The Global Dow℠ is much like that of the Dow Jones Industrial Average. For example, the index includes companies with a long history of success, and a wide following among investors. Its components, like those of The Dow, are selected by the Averages Committee, which is comprised of the Managing Editor of The Wall Street Journal, the head of Dow Jones Indexes research and the head of CME Group research. While stock selection is not governed by quantitative rules, a stock typically is added only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors. Maintaining adequate sector representation within the index is also a consideration in the selection process.
But unlike the Industrial Average, The Global Dow℠ tracks leading companies from around the world—and not just based on size and reputation, but also on their promise for the future. In recognition that global wealth is no longer concentrated in a few countries, The Global Dow℠ has been designed to cover both developed and emerging economies—as well as companies from emerging sectors, such as alternative energy. The index reflects, as closely as possible, the global stock market as it is today, in terms of industries and regions. But emphasis is placed on also representing the global leaders of tomorrow.